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

---

Definitions:

Tuckman's Stage Model

A theory that outlines five stages of group development: forming, storming, norming, performing, and adjourning.

Bale's Equilibrium Model

A conceptual framework in group dynamics focusing on the balance between task-oriented and socio-emotional needs within groups.

Group Development

The process through which a group progresses over time, typically involving stages of forming, storming, norming, performing, and adjourning.

Tuckman's Five-Stage Model

A psychological theory that describes five phases of group development: forming, storming, norming, performing, and adjourning.