Suppose There Is an Increase in the Saving Rate

question 25

Multiple Choice

Suppose there is an increase in the saving rate.This increase in the saving rate will cause an increase in which of the following once the economy reaches its new steady state equilibrium?

• A)growth rate of output
• B)growth rate of capital
• C)growth rate of capital per worker
• D)all of the above
• E) none of the above

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