Suppose there is a reduction in the saving rate. This decrease in the saving rate will cause a reduction in which of the following once the economy reaches its new steady state equilibrium?

Any terms of trade within the limits set by domestic opportunity costs will be mutually harmful, because each country tries to push the other as close to the limits of the terms of trade as possible

a. True b. False Indicate whether the statement is true or false

A decrease in the capital stock would be expected to

a. decrease the labor force. b. increase the level of output. c. decrease real GDP per capita. d. increase real GDP per capita.