Which of the following is an exogenous variable in the Solow model?
A) productivity
B) the depreciation rate
C) the saving rate
D) the initial capital stock
E) All of these answers are correct.

Question

Quizplus · Accepted Answer

In the Solow model, exogenous variables are those not determined within the model itself but are assumed to be given from outside. Productivity, the depreciation rate, the saving rate, and the initial capital stock are all considered exogenous in the Solow model, as they are inputs into the model that affect its outcomes but are not explained by the model itself.

Which of the Following Is an Exogenous Variable in the Solow