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Suppose There Are Two Countries That Are Identical with the Following

Question 23

Multiple Choice

Suppose there are two countries that are identical with the following exception: the saving rate in country A is greater than the saving rate in country B. Given this information, we know that in the long run:


A) output per capita will be the same in both countries.
B) the capital- labour ratio (K/N) will be greater in A than in B.
C) the capital- labour ratio (K/N) will be the same in the two countries.
D) the capital- labour ratio (K/N) will be greater in B than in A.
E) more information is needed to answer this question.

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