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-Refer to Figure 8A

Question 147

Multiple Choice

  -Refer to Figure 8A.2. If the economy were originally saving at the rate S<sub>1</sub> but changed to the rate S<sub>2</sub>, A)  depreciation will not catch up to total saving. B)  capital deepening will continue past K<sub>2</sub>. C)  saving exceeds depreciation at K<sub>1</sub>. D)  the economy stops growing at e<sub>1</sub>.
-Refer to Figure 8A.2. If the economy were originally saving at the rate S1 but changed to the rate S2,


A) depreciation will not catch up to total saving.
B) capital deepening will continue past K2.
C) saving exceeds depreciation at K1.
D) the economy stops growing at e1.

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