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Suppose That the Government Passes a Law Requiring Households to Increase

Question 22

Multiple Choice

Suppose that the government passes a law requiring households to increase savings 10% above previous levels.According to Solow's growth theory,in the long run


A) output per capita grows more rapidly.
B) output per capita grows at the constant steady state rate,n.
C) output per capita stays constant.
D) None of the above.

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