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An Increase in ________ Leads to a Higher Steady-State Capital

Question 62

Multiple Choice

An increase in ________ leads to a higher steady-state capital stock, and a decline in ________ leads to a lower steady-state capital stock.


A) the saving rate; the depreciation rate
B) the saving rate; productivity
C) productivity; the initial capital stock
D) the depreciation rate; the labor stock
E) None of these answers is correct.

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