Assume Two Economies Are Identical in Every Way Except That

Multiple Choice

Assume two economies are identical in every way except that one has a higher saving rate. According to the Solow growth model, in the steady state, the country with the higher saving rate will have ________ level of total output and ________ rate of growth of output than/as the country with the lower saving rate.

A) a higher; a higher
B) a higher; the same
C) a lower; a higher
D) a higher; a lower
E) the same; the same