The Solow model is a growth model because it shows that Bl output per worker grows when the economy starts below steady state. D) The Ssolow model is not a growth model because output per worker does not grow in steady stae. IE] A) output per worker grows in steady state. Cl output per worker grows whether the economy starts below, is in steady state. or starts above steady state. Question 16 0 I 0.3125 points According to the loanable funds market. when government spending increases and taxes are increased by an equal amount, interest rates: A) increase. 'El B) remain the same. Cl decrease. D) can vary wildly