Question: In the Solow model, a large increase in a nation's savings rate... [the savings rate s is staying strictly between 0 and 1.] will surely

In the Solow model, a large increase in a nation's savings rate...

[the savings ratesis staying strictly between 0 and 1.]

  1. will surely increase long-run Y/N but might decrease long-run C/N
  1. will surely increase both long-run Y/N and long-run C/N
  1. might decrease both long-run Y/N and long-run C/N
  1. might decrease long-run Y/N but will surely decrease long-run C

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