Suppose the Saving Rate Is Initially Greater Than the Golden

question 28

Multiple Choice

Suppose the saving rate is initially greater than the golden rule saving rate. We know with certainty that an increase in the saving rate will cause:

• A) a decrease in consumption per worker.
• B) a decrease in output per worker.
• C) an increase in the rate of growth in the long run.
• D) All of the above.
• E) None of the above.

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Definitions:

Neural Crest Cells

A group of embryonic cells found only in vertebrates; develop along the neural tube and migrate to various parts of the embryo where they give rise to (or influence the development of) nerves, head muscles, cranium, jaws, and other structures.

Embryonic Cells

Cells that originate from the embryo and have the potential to develop into any type of body cell, possessing high degrees of plasticity and the ability to proliferate.

Dipnoi

A group of fish also known as lungfish, characterized by their ability to breathe air using lungs in addition to gills.

Actinistia

A subclass of mostly extinct fish, with the modern coelacanths being the only living representatives, characterized by lobed fins.