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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Definitions:

Guinea

A country on the west coast of Africa, known for its rich natural resources, including bauxite and gold, along with its cultural diversity.

African Nationalists

Individuals or groups in Africa advocating for national independence and self-governance, especially during the 20th century decolonization period.

Cesar Chavez

An American labor leader and civil rights activist who co-founded the National Farm Workers Association, leading struggles for the rights of agricultural workers.

National Farm Workers Association

An organization founded to improve the working and living conditions of farm workers in the United States, known for its activism and association with Cesar Chavez.