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Growth Will Be Balanced If and Only If

Question 57

Multiple Choice

Growth will be balanced if and only if


A) the ratio of the economy's stock of capital K to its amount of labor L is constant.
B) the ratio of the rate of growth of the efficiency of the labor force to the depreciation rate of capital is constant.
C) the ratio of the economy's stock of capital K to its level of output Y is constant.
D) the ratio of the savings rate to the investment rate is constant.

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