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    Question

    Which among the following is the reason for convergence

    exhibited by the Solow growth Model ?
    A Static capital-labour ratio Correct Answer Incorrect Answer
    B Declining marginal productivity of capital Correct Answer Incorrect Answer
    C Neutral technical progress. Correct Answer Incorrect Answer
    D Constant rate of growth of population Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Declining marginal productivity of capital is the reason for convergence exhibited in the Solow growth Model.

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