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Suppose the Saving Rate Is Initially Greater Than the Golden

Question 28

Multiple Choice

Suppose the saving rate is initially greater than the golden rule saving rate. We know with certainty that an increase in the saving rate will cause:


A) a decrease in consumption per worker.
B) a decrease in output per worker.
C) an increase in the rate of growth in the long run.
D) All of the above.
E) None of the above.

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