If the Per-Worker Production Function Is Y = Ak, Where

question 13

Multiple Choice

If the per-worker production function is y = Ak, where A is a positive constant, in the steady state, a:

• A) lower saving rate does not affect the growth rate.
• B) higher saving rate does not affect the growth rate.
• C) lower saving rate leads to a higher growth rate.
• D) higher saving rate leads to a higher growth rate.

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