If a Country's Saving Preference Increased from 10 Percent to 12

Multiple Choice

If a country's saving preference increased from 10 percent to 12 percent of disposable income and it was operating at its steady state before the change, we would expect to see which of the following? I. a decrease in capital stock II. a decrease in real GDP III. an increase in real GDP IV. an increase in capital stock

A) I and II only
B) II and III only
C) III and IV only
D) I and III only