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Suppose Two Countries Are Identical in Every Way with the Following

Question 12

Multiple Choice

Suppose two countries are identical in every way with the following exception. Economy A has a higher rate of depreciation (6) than economy B. Given this information, we know with certainty that:


A) steady state consumption in A and B are the same.
B) steady state growth of output per worker is higher in B than in A.
C) steady state growth of output per worker is higher in A than in B.
D) steady state consumption in A is lower than in B.
E) steady state consumption in A is higher than in B.

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