According to neoclassical growth theory, an increase in the saving rate:
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UGC-NET 2025 Question 36: Harrod–Domar and Solow growth models
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Harrod–Domar and Solow growth models has come up 113 times in 7 exams since 2006.
What this question tests
This question is on The Solow model and its steady state, part of Harrod–Domar and Solow growth models in Economics of Growth and Development.
Growth with substitutable factors: capital per worker settles where saving covers depreciation and dilution.
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