M
MacroEcon
Guest
Consider the Solow model. Assume that initially the economy is in its steady state.
Suppose the investment rate decreases.
What happens to the steady state?
A. There is a new steady state higher than the initial.
B. There is no steady state.
C. There is a new steady state lower than the initial.
D. The steady state does not change.
Suppose the investment rate decreases.
What happens to the steady state?
A. There is a new steady state higher than the initial.
B. There is no steady state.
C. There is a new steady state lower than the initial.
D. The steady state does not change.