In the neoclassical growth model,if two countries are exactly the same but one has a higher savings rate,we would expect that country to have

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In the neoclassical growth model, a higher savings rate leads to a higher capital-to-labor ratio, which increases output. However, in the steady state, the growth rates of output converge across countries, regardless of differences in savings rates, because the model predicts diminishing returns to capital accumulation. Thus, while the country with the higher savings rate will have higher output and a higher capital-to-labor ratio, the growth rate of output in the steady state will be the same for both countries.

In the Neoclassical Growth Model,if Two Countries Are Exactly the Same