Author Question: The implication of the Solow model is that for sustained growth: A) the ratio of savings rate to ... (Read 70 times)

mrsjacobs44 · **on:** Jun 30, 2018

The implication of the Solow model is that for sustained growth:

A) the ratio of savings rate to depreciation rate should be constant as the economy grows over time.
B) the ratio of savings rate to depreciation rate should increase as the economy grows over time.
C) the ratio of capital stock to GDP should decreases the economy grows over time.
D) the ratio of capital stock to GDP should be constant as the economy grows over time.

Question 2

Markets exist

A) because each person specializes in the production of many products.
B) because people are self-sufficient.
C) as an arrangement where buyers do not interact with sellers.
D) so people can buy and sell things.