If Two Economies Are Identical (Including Having the Population Growth

question 83

Multiple Choice

If two economies are identical (including having the population growth rates and efficiency of labour) ,but one economy has a lower saving rate,then the steady-state level of income per worker in the economy with the lower saving rate will be:

• A) at a lower level than the steady state of the high-saving economy.
• B) at a higher level than the steady state of the high-saving economy.
• C) at the same level as the steady state of the high-saving economy.
• D) proportional to the ratio of the capital stocks in the two economies.

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Definitions:

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A concept in Freudian psychoanalysis referring to a girl's sense of loss and jealousy over not having a penis, believed to lead to feelings of inferiority and psychological repercussions.