In the Solow growth model with population growth but no technological progress, increases in capital have a positive impact on steady-state consumption per worker by _____, but have a negative impact on steady-state consumption per worker by _____.
A) increasing the capital to worker ratio; reducing saving in the steady state.
B) reducing investment required in the steady state; increasing saving in the steady state.
C) increasing output; increasing output required to replace depreciating capital.
D) decreasing the saving rate; increasing the depreciation rate.
Correct Answer:
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