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Exhibit: Capital Per Worker and the Steady State in This

Question 4

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Exhibit: Capital per Worker and the Steady State Exhibit: Capital per Worker and the Steady State   In this graph, capital-labour ratio k<sub>2</sub> is not the steady-state because: A) the saving rate is too high. B) the investment ratio is too high. C) gross investment is greater than depreciation. D) depreciation is greater than gross investment. In this graph, capital-labour ratio k2 is not the steady-state because:


A) the saving rate is too high.
B) the investment ratio is too high.
C) gross investment is greater than depreciation.
D) depreciation is greater than gross investment.

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