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    Exam 8: Economic Growth II: Technology, Empirics, and Policy
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    Starting from a Steady-State Situation, If the Saving Rate Increases
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Starting from a Steady-State Situation, If the Saving Rate Increases

Question 3

Question 3

Multiple Choice

Starting from a steady-state situation, if the saving rate increases, the rate of growth of capital per worker will:


A) increase and continue to increase unabated.
B) increase until the new steady state is reached.
C) decrease until the new steady state is reached.

Correct Answer:

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