Suppose an Economy Experiences a Decrease in the Saving Rate

Multiple Choice

Suppose an economy experiences a decrease in the saving rate. We know with certainty that this decrease in the saving rate will:

A) decrease the growth of output per worker only temporarily.
B) increase the steady state growth of output per worker.
C) increase the growth of output per worker only temporarily.
D) have an ambiguous effect on the growth of output per worker.
E) decrease the steady state growth of output per worker.