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 output per person and ______ rate of growth of output per worker as/than the country with the lower saving rate.

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