-Consider the Solow model exhibited in Figure 5.4.
Which of the following is (are)true?
i.If 1 denotes Country 1 and 2 denotes Country 2,Country 1 has a higher saving rate.
ii.If 1 denotes Country 1 and 2 denotes Country 2,Country 1 has a lower depreciation rate.
iii.If 1 denotes Country 1 and 2 denotes Country 2,Country 2 has a lower steady state.
A)i
B)ii
C)iii
D)ii and iii
E)i,ii,and iii

Question

-Consider the Solow model exhibited in Figure 5.4.
Which of the following is (are)true?
i.If 1 denotes Country 1 and 2 denotes Country 2,Country 1 has a higher saving rate.
ii.If 1 denotes Country 1 and 2 denotes Country 2,Country 1 has a lower depreciation rate.
iii.If 1 denotes Country 1 and 2 denotes Country 2,Country 2 has a lower steady state.
A)i 
B)ii 
C)iii 
D)ii and iii 
E)i,ii,and iii

Quizplus · Accepted Answer

Country 1 has a higher saving rate and a lower depreciation rate than Country 2, which leads to a higher steady state for Country 1.

-Consider the Solow Model Exhibited in Figure 5.4