Suppose Two Countries Are Identical in Every Way with the Following

question 51

Multiple Choice

Suppose two countries are identical in every way with the following exception.Economy A has a higher saving rate than economy B.Given this information,we know with certainty that

• A)steady state consumption in A is higher than in B.
• B)steady state consumption in A is lower than in B.
• C)steady state consumption in A and in B are equal.
• D)steady state growth of output per worker is higher in A than in B.
• E) none of the above

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