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问题如下：

Pamuk’s conclusion regarding the growth policy debate is most consistent with which model of economic growth?

选项：

A.Classical B.Endogenous C.Neoclassical

解释：

Solution

B is correct. Pamuk’s conclusion is consistent with the endogenous growth model. In the endogenous growth model, the economy does not reach a steady growth rate equal to the growth of labor plus an exogenous rate of labor productivity growth. Instead, saving and investment decisions can generate self-sustaining growth at a permanently higher rate. This situation is in sharp contrast to the neoclassical model, in which only a transitory increase in growth above the steady state is possible. The reason for this difference is because of the externalities on R&D, diminishing marginal returns to capital do not set in.

A is incorrect. The scenario outlined is not consistent with the classical growth model.

C is incorrect. The scenario outlined is not consistent with the neoclassical model.