Multiple Choice
Suppose the saving rate is initially less than the golden rule saving rate. We know with certainty that a decrease in the saving rate will cause:
A) a decrease in consumption per worker.
B) a decrease in output per worker.
C) a decrease in the capital- labour ratio.
D) All of the above.
E) None of the above.
Correct Answer:
Verified
Correct Answer:
Verified
Q22: Based on our understanding of the growth
Q23: Suppose an economy experiences a 6% increase
Q24: Assume that technological progress does not occur.
Q25: The empirical evidence indicates that most OECD
Q26: The countries with the lowest output per
Q28: Suppose the saving rate is initially greater
Q29: Suppose there are two countries that are
Q30: Suppose the saving rate is initially greater
Q31: The golden rule level of capital refers
Q32: Suppose an economy experiences a 5% increase