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10-03-2020
Business

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In the Solow growth model the saving rate determines the allocation of output between:________.a. saving and investment. b. output and capital. c. consumption and output. d. investment and consumption.

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zunesyed zunesyed

17-03-2020

Answer:

The correct answer is (D)

Explanation:

The Solow Growth Model is a macroeconomic model of financial development that examine the changes in the output in an economy after some time because of changes in the population, development rate, the investment funds rate, and the speed of advancement due to technological changes. In that regard, Solow growth model determines the allocation of output between investment and consumption.

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