As an economy adjusts to an increase in the saving rate,we would expect output per worker
A) to increase at a constant rate and continue increasing at that rate in the steady state.
B) to increase at a permanently higher rate.
C) to decrease at a permanently higher rate.
D) to return to its original level.
E) none of the above
Correct Answer:
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Q2: A reduction in the saving rate will
Q3: Explain the relationship among output,saving,and investment.
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Q7: Explain what condition must occur for each
Q8: An increase in the saving rate will
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