In the Long Run,an Increase in the Saving Rate in a Steady-State

question 1

Multiple Choice

In the long run,an increase in the saving rate in a steady-state economy will cause

• A)an increase in the capital-labour ratio and an increase in consumption per worker.
• B)an increase in the capital-labour ratio and a decrease in consumption per worker.
• C)a decrease in the capital-labour ratio and a decrease in consumption per worker.
• D)a decrease in the capital-labour ratio and an increase in consumption per worker.

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Definitions:

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