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Which, if any, of the following statements is true in the Solow model: 1) A higher saving rate expands the steady-state of capital stock, thus
Which, if any, of the following statements is true in the Solow model:
1) A higher saving rate expands the steady-state of capital stock, thus affecting the steady state of the output and the steady state growth rate.
2) A higher rate of population growth necessarily generates a larger steady state of capital accumulation per worker.
3) None of the other possible answers.
4) A higher saving rate leads to a higher output and an improvement of society's well-being.
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