Solved

Fretonia and Libstien Are the Same Except Fretonia Has a Larger

Question 104

Multiple Choice

Fretonia and Libstien are the same except Fretonia has a larger capital stock.Both countries undertake policies that raise their saving rates to the same higher level.We would expect that


A) both countries would have permanent increases in their growth rates,but the increase would initially be larger in Fretonia.
B) both countries would have permanent increases in their growth rates,but the increase would initially be smaller in Fretonia.
C) both countries would have temporary increases in their growth rates,but the increase would be larger in Fretonia.
D) both countries would have temporary increases in their growth rates,but the increase would be smaller in Fretonia.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions