According to the Solow growth model,when wealthy countries donate funds to poorer countries,this will ________ investment,________ the capital stock,and ________ economic growth.
A) increase; increase; increase
B) increase; increase; decrease
C) decrease; increase; increase
D) decrease; decrease; decrease
E) increase; decrease; decrease

Question

Quizplus · Accepted Answer

According to the Solow growth model, when wealthy countries donate funds to poorer countries, it increases investment, which in turn increases the capital stock and promotes economic growth.

According to the Solow Growth Model,when Wealthy Countries Donate Funds