Consider the Solow-Swan model. Which of the following statements is FALSE? O The higher the saving rate the higher the steady state level of capital per worker O In steady state, output per worker does not depend on the level of total factor productivity O The higher the depreciation rate the lower the steady state level of capital O If investment is greater than total depreciation, the capital stock increases fer worker

Consider the Solow-Swan model. Which of the following statements is FALSE? O The higher the saving rate the higher the steady state level of capital per worker O In steady state, output per worker does not depend on the level of total factor productivity O The higher the depreciation rate the lower the steady state level of capital O If investment is greater than total depreciation, the capital stock increases fer worker

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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6. In the Solow model, a decrease in the capital depreciation rate: O Increases the saving rate. O Increases consumption per capita and decreases investment per capita. O Increases savings per capita but decreases investment per capita. O Note of the above.
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