Question
Which of the following is false, regarding the Solow model of economic growth? a. Capital accumulation can only produce transient (i.e. temporary) growth. b. With
Which of the following is false, regarding the Solow model of economic growth?
a. Capital accumulation can only produce transient (i.e. temporary) growth.
b. With a finite population, an unlimited amount capital can accumulate.
c. In the two-country model of technological change, increasing the R&D spending rate in the leading country permanently increases growth, but increasing the R&D spending rate in the following country only transiently increases growth.
d. Positive feedbacks between the investment rate and per-capita income can lead to alternative high-and low-affluence stable states.
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