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According to the Solow model, a permanent increase in the rate of growth in capital per...

According to the Solow model, a permanent increase in the rate of growth in capital per person is possible by ____________. a) increasing saving rate b) decreasing population growth rate c) decreasing depreciation rate d) none of a-c

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Answer #1

*ANSWER :: (A) Increasing Saving Rate

=> Explanation ::

=>   The Solow Model Shows The Long run Economic Growth By Examine Different Factors Of The Economy.It Examine Change in Economy For Change In Population in The Country.

=>   In The Solow Model An Permanent Increase In Capital Growth Per Person Is Possible By Imcreasing Saving rate In Economy. If Saving Rate Increase In Country It Increase More New Capital In The Country So It Leads To Increase In Capital Growth Per Person. Increase Saving Rate Incurrage Workers to Invest In new capital So It Leads To Increase in The Capital Growth Per Person.

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