An increase in the saving rate will NOT affect which of the following variables in the long run?
A)output per worker
B)the growth rate of output per worker
C)the amount of capital in the economy
D)capital per worker
E)none of the above

Question

Quizplus · Accepted Answer

In the long run, the growth rate of output per worker is determined by technological progress, not by the saving rate. An increase in the saving rate affects the level of output per worker, capital per worker, and the amount of capital, but not the long-term growth rate.

An Increase in the Saving Rate Will NOT Affect Which