Assume That a Country Experiences a Permanent Decrease in Its

Multiple Choice

Assume that a country experiences a permanent decrease in its saving rate. Which of the following will occur as a result of this decrease in the saving rate?

A) A permanently slower growth rate of output.
B) A permanently lower level of capital per worker.
C) No permanent effect on the level of output per capita.
D) Both A and B.
E) Both B and C.