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Question 9

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The next questions refer to the following.
Consider an economy with the production function The next questions refer to the following. Consider an economy with the production function , a depreciation rate of 5%, a saving and investing rate of 10%, and no labor growth. -If the saving and investing rate rose to 20% of income,in the long run,this economy's GDP would A) increase by 10% B) decrease by 10% C) double D) stay the same E) rise by a factor of 10 , a depreciation rate of 5%, a saving and investing rate of 10%, and no labor growth.
-If the saving and investing rate rose to 20% of income,in the long run,this economy's GDP would


A) increase by 10%
B) decrease by 10%
C) double
D) stay the same
E) rise by a factor of 10

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