When Steady State Capital Per Worker Is Above the Golden-Rule

question 6

Multiple Choice

When steady state capital per worker is above the golden-rule level,we know with certainty that an increase in the saving rate will

• A)increase consumption in both the short run and the long run.
• B)decrease consumption in both the short run and the long run.
• C)decrease consumption in the short run, and increase it in the long run.
• D)increase consumption in the short run, and decrease it in the long run.
• E) none of the above

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Definitions:

States Rights' Democratic Party

Known as the Dixiecrats, a short-lived segregationist political party in the United States that opposed civil rights laws for African Americans, maintaining a stance in favor of state's rights to legislate race relations.

Progressive Party

A political party in the United States that advocated for reform and progressive policies, notably active in the early 20th century.

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The set of values, principles, and practices that define the liberties and rights pursued and protected in the United States, including freedom of speech, religion, and the pursuit of happiness.

Alger Hiss

A former U.S. government official who was accused of being a Soviet spy in 1948 and convicted of perjury in connection with this charge.