Suppose There Is an Increase in the Saving Rate

question 68

Multiple Choice

Suppose there is an increase in the saving rate.This increase in the saving rate must cause an increase in consumption per capita in the long run when

• A)capital per worker approaches the golden-rule level of capital per worker.
• B)the saving is used for education rather than physical capital.
• C)the rate of saving exceeds the rate of depreciation.
• D)there is no technological progress.
• E) technological progress depends on human capital.

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