Assume That the Saving Rate Decreases

Multiple Choice

Assume that the saving rate decreases. We know that this decrease in the saving rate will cause which of the following?

A) A permanently lower rate of growth of output per capita.
B) A temporary decrease in the level of output per capita.
C) No permanent change in the level of output per capita.
D) A decrease in the capital- labour ratio.
E) A temporary increase in the rate of growth of output per capita.