Which of the following is an exogenous variable in the Solow model?
A) productivity
B) depreciation rate
C) saving rate
D) the initial capital stock
E) All of these answers are correct.

Question

Quizplus · Accepted Answer

In the Solow model, productivity, depreciation rate, saving rate, and the initial capital stock are all considered exogenous variables, as they are determined outside the model and are not influenced by the model's dynamics.

Which of the Following Is an Exogenous Variable in the Solow