In the Solow model, the faster growth of output that results from an i

In the Solow model, the faster growth of output that results from an increase in the saving rate is temporary, because ________.

A) of diminishing marginal product of capital
B) with a larger stock of capital, consumption is encouraged more than investment
C) the rising capital stock depreciates at a faster rate
D) the economy settles into a steady state in which saving no longer rises

ANSWER

A