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Author Question: Which of the following, if implemented in the Solow growth model, would not lead to a steady state? ... (Read 50 times)

formula1

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on: Jun 30, 2018
Which of the following, if implemented in the Solow growth model, would not lead to a steady state?
 
  A) A higher population growth rate.
  B) Decreasing returns to scale in production.
  C) A savings rate that decreases as income increases.
  D) A constant marginal product of capital.

Question 2

In a stock market boom ________.
 
  A) autonomous consumption might increase because stock holders might feel richer and consume more
  B) autonomous investment might increase because a higher stock value for a firm helps firms raise funds for increased investment
  C) the IS curve might shift to the right
  D) all of the above
  E) none of the above


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mjenn52

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Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

D


formula1

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Reply 2 on: Jun 30, 2018
Wow, this really help

billybob123

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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