An Increase in the Saving Rate in a Steady-State Economy

question 33

Multiple Choice

An increase in the saving rate in a steady-state economy would cause

• A)a rightward movement along the saving-per-worker curve and an increase in the capital-labor ratio.
• B)an upward shift in the saving-per-worker curve and an increase in the capital-labor ratio.
• C)a downward shift in the saving-per-worker curve and a decrease in the capital-labor ratio.
• D)a leftward movement along the saving-per-worker curve and a decrease in the capital-labor ratio.

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Definitions:

Cognitive Maps

Mental representations of physical spaces, allowing individuals to visualize and navigate the layout of environments.

Mental Information

Knowledge or data that is processed, stored, and used by the mind, including facts, concepts, and sensory inputs.

Mirror Neurons

Frontal lobe neurons that some scientists believe fire when we perform certain actions or observe another doing so. The brain’s mirroring of another’s action may enable imitation and empathy.

Observational Learning

Acquiring understanding by observing the actions of others and the consequences that follow.