-Refer to Figure 8A

question 17

Multiple Choice

-Refer to Figure 8A.2. If the economy were originally saving at the rate S₁ but changed to the rate S₂,

• A) depreciation will not catch up to total saving.
• B) capital deepening will continue past K₂.
• C) saving exceeds depreciation at K₁.
• D) the economy stops growing at e₁.