In the Solow model, the parameter $\bar { d }$ denotes ________ and is ________.
A) investment; less than one
B) the depreciation rate; equal to zero
C) consumption; greater than one
D) the depreciation rate; less than one
E) investment; greater than one

Question

Quizplus · Accepted Answer

In the Solow model, $\bar { d }$ represents the depreciation rate, which is a fraction of the capital stock that wears out each period, and it is typically less than one.

In the Solow Model, the Parameter dˉ\bar { d }dˉ Denotes ________ and Is ________

In the Solow Model, the Parameter $\bar { d }$ Denotes and Is