Saving rate is initially less than golden rule saving rate

Reference no: EM13690343

Suppose the saving rate is initially less than the golden rule saving rate. We know with certainty that a decrease in the saving rate will cause:

Select one:

a. a decrease in the capital-labour ratio

b. a decrease in consumption per worker

c. a decrease in output per worker

d. all of the above

e. none of the above

Reference no: EM13690343

Questions Cloud

Assume that the stock of capital increases : Assume that the stock of capital ( K) increases by 6%. Holding all other factors constant, we know with certainty that which of the following will occur?

What was the rate of return on the investment : Normal 0 false false false EN-US X-NONE X-NONE An investment of $5000 in B..

Saving rate is initially less than golden rule saving rate : Suppose the saving rate is initially less than the golden rule saving rate. We know with certainty that a decrease in the saving rate will cause:

Central bank implements monetary contraction : Assume that the central bank implements monetary contraction that is not fully anticipated by financial markets. This partially unexpected monetary contraction will cause which of the following to occur?

Forming expectations of future output-future interest rates : Assume individuals consider only the short-run effects of changes in future macro variables when forming expectations of future output and future interest rates.

Principles of political economy and taxation : Normal 0 false false false EN-US X-NONE X-NONE Are there any similarities ..

User Account

All Pages