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Exhibit: Capital-Labor Ratio and the Steady State in This

Question 34

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Exhibit: Capital-Labor Ratio and the Steady State Exhibit: Capital-Labor Ratio and the Steady State   In this graph, capital-labor ratio k<sub>2</sub> is not the steady-state capital-labor ratio because: A)  the saving rate is too high. B)  the investment ratio is too high. C)  gross investment is greater than depreciation. D)  depreciation is greater than gross investment. In this graph, capital-labor ratio k2 is not the steady-state capital-labor ratio because:


A) the saving rate is too high.
B) the investment ratio is too high.
C) gross investment is greater than depreciation.
D) depreciation is greater than gross investment.

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