Suppose the Saving Rate Is Initially Less Than the Golden

question 27

Multiple Choice

Suppose the saving rate is initially less than the golden rule saving rate. We know with certainty that a decrease in the saving rate will cause:

• A) a decrease in consumption per worker.
• B) a decrease in output per worker.
• C) a decrease in the capital- labour ratio.
• D) All of the above.
• E) None of the above.

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A default hypothesis that there is no significant effect or relationship between two measured phenomena.

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