If the saving rate is 1 , we know that:
A) K/N will be at its highest level.
B) C/N = 0.
C) Y/N will be at its highest level.
D) All of the above.
E) Only A and B.

Question

Quizplus · Accepted Answer

If the saving rate is 1, then all income is saved and none is consumed. This means that C/N = 0, and Y/N will be at its highest level, since all income is being used for investment. K/N will also be at its highest level, since all investment is being used to increase the capital stock.

If the Saving Rate Is 1 , We Know That