According to the Solow model, in the steady state, countries with high saving rates should have a:
A) low labor-output ratio
B) low capital-output ratio
C) high capital-output ratio
D) high depreciation rate
E) a high $\bar { A }$

Question

Quizplus · Accepted Answer

In the Solow model, a higher saving rate leads to a higher steady-state level of capital per worker, which results in a higher capital-output ratio.

According to the Solow Model, in the Steady State, Countries Aˉ\bar { A }Aˉ

According to the Solow Model, in the Steady State, Countries $\bar { A }$