In the Absence of Technological Progress,we Know with Certainty That

Multiple Choice

In the absence of technological progress,we know with certainty that an decrease in the saving rate will cause which of the following?

A) decrease steady state consumption
B) increase steady state consumption
C) have no effect on steady state consumption
D) decrease steady state consumption only if the decrease in saving exceeds the increase in depreciation
E) decrease steady state consumption only if the decrease in saving is less than the decrease in depreciation