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In the Solow model, an increase in the rate of depreciation and a concurrent decrease in the savings rate, will lead in the steady-state, (a)
In the Solow model, an increase in the rate of depreciation and a concurrent decrease in the savings rate, will lead in the steady-state,
(a) to lower output per worker, with an ambiguous effect on consumption per worker
(b) to lower output per worker, and lower consumption per worker.
(c) to higher output per worker, with lower consumption per worker.
(d) to an ambiguous effect on both output per worker, and consumption per worker.
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