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

question 31

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

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Definitions:

Social Identity

An individual's sense of who they are based on their group memberships, such as social, cultural, and occupational groups.

Ingroup Bias

The inclination to prefer individuals from one's own group rather than those from outside groups.

Hindsight Bias

A cognitive bias that causes people to overestimate their ability to predict events that have already happened.

Unconscious Patronization

A subtle form of discrimination where individuals, without realizing it, treat members of marginalized groups in a condescending manner.