Suppose There Is a Decrease in the Rate of Saving

Multiple Choice

Suppose there is a decrease in the rate of saving. This decrease in the saving rate must cause a decrease in consumption per person in the long run when:

A) the rate of saving exceeds the rate of depreciation.
B) technological progress depends on human capital.
C) the saving is used for education rather than physical capital.
D) capital per worker is already less than the golden- rule level.
E) there is no technological progress.