When steady state capital per worker is below the golden- rule level, we know with certainty that an increase in the saving rate will:
A) increase consumption in the short run, and decrease it in the long run.
B) decrease consumption in the short run, and increase it in the long run.
C) decrease consumption in both the short run and the long run.
D) increase consumption in both the short run and the long run.
E) None of the above.

Question

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The Answer of When steady state capital per worker is below the golden- rule level, we know with certainty that an increase in the saving rate will:
A) increase consumption in the short run, and decrease it in the long run.
B) decrease consumption in the short run, and increase it in the long run.
C) decrease consumption in both the short run and the long run.
D) increase consumption in both the short run and the long run.
E) None of the above.

When Steady State Capital Per Worker Is Below the Golden-