Suppose There Is an Increase in the Saving Rate

question 68

Multiple Choice

Suppose there is an increase in the saving rate.This increase in the saving rate must cause an increase in consumption per capita in the long run when

• A)capital per worker approaches the golden-rule level of capital per worker.
• B)the saving is used for education rather than physical capital.
• C)the rate of saving exceeds the rate of depreciation.
• D)there is no technological progress.
• E) technological progress depends on human capital.

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Definitions:

Reinforcement

In behavioral psychology, a stimulus or event that increases the likelihood of the recurrence of a particular behavior.

Conditioned Response

A learned response to a previously neutral stimulus that has become associated with an unconditioned stimulus through classical conditioning.

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Emotional states that are pleasant or desirable, such as happiness, joy, or contentment.

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Music composed to evoke feelings of pride, loyalty, and love for one's country, often performed during national celebrations and military ceremonies.