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

Multiple Choice

An increase in ________ leads to a higher steady-state level of output, and an increase in ________ leads to a lower steady-state level of output.

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.