Question
Using the intuition of the Solow model , how would losing World War II set up Japan and Germany for high rates of economic growth
Using the intuition of the Solow model, how would losing World War II set up Japan and Germany for high rates of economic growth in the 1950s/60s (select all that apply)?
Group of answer choices
1- Significant amounts of investment were provided by the US and its Allies through the Marshall Plan
2-Following the war, the rate of capital depreciation increased dramatically
3-As a consequence of wartime destruction, the marginal contribution of investment was greater than it would be at higher levels of capital stock
4-Both countries had pre-war institutions that facilitated large investment
5-Business start ups were actively encouraged through government policies that reduced entry costs
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