Suppose There Are Two Countries That Are Identical in Every

question 55

Multiple Choice

Suppose there are two countries that are identical in every way with the following exception: Country A has a higher saving rate than country B. Given this information, we know with certainty that:

• A) the growth rate will be higher in B than in A.
• B) the growth rate will be the same in the two countries.
• C) the level of consumption per worker will be higher in B.
• D) the level of consumption per worker will be higher in A.
• E) the growth rate will be higher in A than in B.

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