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As an Economy Adjusts to an Increase in the Saving

Question 28

Multiple Choice

As an economy adjusts to an increase in the saving rate,we would expect output per worker


A) to increase at a constant rate and continue increasing at that rate in the steady state.
B) to increase at a permanently higher rate.
C) to decrease at a permanently higher rate.
D) to return to its original level.
E) none of the above

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