All Things Equal, an Economy with a Higher Capital Share

Multiple Choice

All things equal, an economy with a higher capital share of income, α,relative to an economy with a smaller capital share will:

A) experience a shorter transitional period to a new steady state whenever saving rates change.
B) experience a longer transitional period to a new steady state whenever saving rates change.
C) experience the same transitional period to a new steady state whenever saving rates change.
D) experience no transitional period.