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In the Malthusian Model, When Z Increases, Initially Consumption

Question 3

Multiple Choice

In the Malthusian model, when z increases, initially consumption


A) increases and remains above the original steady state level forever.
B) increases and then falls to its steady state level.
C) decreases and remains below the original steady state level forever.
D) decreases and then increases to its steady state level.
E) is unaffected by the change in z.

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