As an Economy Adjusts to an Decrease in the Saving

question 4

Multiple Choice

As an economy adjusts to an decrease in the saving rate,we would expect output per worker

• A)to decrease at a constant rate and continue decreasing at that rate in the steady state.
• B)to decrease at a permanently higher rate.
• C)to increase at a permanently higher rate.
• D)to return to its original level.
• E) none of the above

---

Definitions:

Product

In biochemistry, a product is a substance that is formed as the result of a chemical reaction.

Active Sites

The region on an enzyme where substrate molecules bind and undergo a chemical reaction.

Energy of Activation

The minimum quantity of energy that the reacting species must possess in order to undergo a specified reaction.

Coenzymes

Organic non-protein molecules that bind to enzymes and are essential for their catalyst activity.