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In the Neoclassical Growth Model,an Increase in the Saving Rate

Question 50

Multiple Choice

In the neoclassical growth model,an increase in the saving rate will


A) increase the long-run equilibrium rate of growth in output.
B) reduce the long-run equilibrium rate of growth in output.
C) leave the long-run equilibrium rate of growth in output unchanged.
D) affect the long-run equilibrium rate of growth in output but the direction of the effect is uncertain.

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