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:

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