The impact of immigration on an economy's steady state capital-labor ratio is reduced to the extent that the immigrants tend to ________ than the native population.
A)save more
B)have higher fertility
C)have lower income
D)be younger

Question

Quizplus · Accepted Answer

If immigrants save more than the native population, they contribute more to the capital stock, which can offset the increase in labor supply and help maintain the capital-labor ratio.

The Impact of Immigration on an Economy's Steady State Capital-Labor