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All Else Being Equal,a Permanent Decrease in the Saving Rate

Question 38

Multiple Choice

All else being equal,a permanent decrease in the saving rate in a steady-state economy would cause


A) an increase in the capital-labor ratio and an increase in consumption per worker.
B) an increase in the capital-labor ratio and a decrease in consumption per worker.
C) a decrease in the capital-labor ratio and a decrease in consumption per worker.
D) a decrease in the capital-labor ratio and an increase in consumption per worker.

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