All else being equal, a permanent decrease in the saving rate in a steady-state economy would cause
A. an increase in the capital-labor ratio and a decrease in consumption per worker.
B. an increase in the capital-labor ratio and an increase in consumption per worker.
C. a decrease in the capital-labor ratio and a decrease in consumption per worker.
D. a decrease in the capital-labor ratio and an increase in consumption per worker.
Answer: C
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One way to measure national debt over time is relative to: a. the cash flow of the banking system
b. the economy's production and income. c. credit sales of consumer durables over a year. d. national home sales in large cities. e. the economy's savings.
Which of the following questions would not be of particular interest to a microeconomist?
a. Why do national economies grow? b. What percentage of consumer income is spent on entertainment? c. Why do workers prefer the 4-day workweek? d. What happens to worker productivity when the job shifts to a 4-day workweek? e. How is the electric industry harmed by the passage of new clean air legislation?