An Increase in the Saving Rate Starting from a Steady

question 13

Multiple Choice

An increase in the saving rate starting from a steady state with less capital than the Golden Rule causes investment to _____ in the transition to the new steady state.

• A)increase
• B)decrease
• C)first increase and then decrease
• D)first decrease and then increase

---

Definitions:

Ineffective Coping

An inability to use appropriate and effective strategies to manage personal stress, leading to further psychological or health issues.

Acute Mania

A state of heightened mood, energy, and activity levels, often associated with bipolar disorder, that can significantly impair judgment and behavior.

Bipolar Disorder

A mental disorder characterized by periods of depression and periods of elevated mood or mania.