An Increase in ________ Leads to a Higher Steady-State Level

question 66

Multiple Choice

An increase in ________ leads to a higher steady-state level of output per worker, and a decline in the ________ leads to a lower steady-state level of output per worker.

• A) productivity; saving rate
• B) the saving rate; initial capital stock
• C) the saving rate; depreciation rate
• D) the initial capital stock; saving rate
• E) None of these answers are correct.