An Increase in the Saving Rate in a Steady-State Economy

Multiple Choice

An increase in the saving rate in a steady-state economy would cause

A) a rightward movement along the saving-per-worker curve and an increase in the capital-labour ratio.
B) an upward shift in the saving-per-worker curve and an increase in the capital-labour ratio.
C) a downward shift in the saving-per-worker curve and a decrease in the capital-labour ratio.
D) a leftward movement along the saving-per-worker curve and a decrease in the capital-labour ratio.