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Suppose There Are Two Countries That Are Identical with the Following

Question 3

Multiple Choice

Suppose there are two countries that are identical with the following exception: the saving rate in country A is greater than the saving rate in country B. Given this information, we know that in the long run:


A) the growth rate of output per capita will be the same in both countries.
B) output per capita will be the same in both countries.
C) the capital- labour ratio will be the same in both countries.
D) the growth rate of output per capita will be greater in A than in B.
E) the growth rate of output per capita will be greater in B than in A.

Correct Answer:

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