Question: The Solow Model gives us a useful perspective to examine the >effect of fertility change upon macro economy. Based on the solow model, consider the
The Solow Model gives us a useful perspective to examine the
>effect of fertility change upon macro economy. Based on the solow model, consider the following statements that
>included capital into the fertility model. State whether they are
>TRUE or FALSE, and explain.
> A. If robotization were able to make the economy even more capital
>intensive, increasing the capital-income ratio from 3.0
>to 5.0, the optimal fertility rate would be higher: true of false? explain.
> B. In an economy that includes capital in the model, the government
>would advocate for policies that encourage fertility: true of false? explain.
> C. For countries with higher income, the fertility level that
>optimizes consumption under the high-capital-cost scenario would
>be above replacement level: true of false? explain.
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