The ratio of the economy's stock of capital to its level of output Y will be constant
A) when the ratio of the savings rate to the investment rate is constant.
B) when the ratio of the savings rate to the sum of the proportional rate of growth of the labor force, the proportional rate of growth of the efficiency of the labor force, and the depreciation rate of capital is constant.
C) when the ratio of the savings rate to the sum of the proportional rate of growth of the capital stock, the proportional rate of growth of the efficiency of the labor force, and the depreciation rate of capital is constant.
D) when the ratio of the savings rate to the sum of the proportional rate of growth of the labor force, the proportional rate of growth of the efficiency of the capital stock, and the depreciation rate of capital is constant.
Correct Answer:
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