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In the Solow growth model, from an initial steady state with fixed values of A, d, and n, an increase in the national saving rate causes the standard of living to

grow at a slower rate temporarily, and then return to the initial growth rate.

grow at a permanently faster rate.

not change at all in the short run or the long run.

rise temporarily, and then fall back to its initial level.

rise and then hold constant at a new higher level.

Please Explain

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91235413

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