In the two-sector endogenous growth model, the saving rate (s) affects the steady-state:
A) level of income.
B) growth rate of income.
C) level of income and growth rate of income.
D) growth rate of the stock of knowledge.

Question

Quizplus · Accepted Answer

In the two-sector endogenous growth model, the saving rate (s) primarily affects the steady-state level of income, not the growth rate of income or the growth rate of the stock of knowledge.

In the Two-Sector Endogenous Growth Model, the Saving Rate (S)