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:

Desire for Distance

The desire for distance describes an individual's inclination to seek space or separation from others or certain situations, driven by various psychological or situational factors.

Secure Attachment Style

A pattern of bonding where individuals are comfortable with intimacy and independence, showing trust in relationships.

Anxiety

A sensation of apprehension, tension, or discomfort, often related to an upcoming occurrence or a situation whose result is not yet determined.

Avoidance

A strategy or behavior aimed at preventing or eliminating encounters with specific stimuli, situations, or activities believed to be unpleasant.