An increase in the saving rate in a steady-state economy would cause
A) a rightward movement along the saving-per-worker curve and an increase in the capital—labor ratio.
B) an upward shift in the saving-per-worker curve and an increase in the capital—labor ratio.
C) a downward shift in the saving-per-worker curve and a decrease in the capital—labor ratio.
D) a leftward movement along the saving-per-worker curve and a decrease in the capital—labor ratio.
B
You might also like to view...
Suppose a bank has $600,000 in deposits, a reserve ratio of 20 percent, and bank reserves of $240,000. This bank can make new loans in the amount of
A) $840,000. B) $360,000. C) $120,000. D) $12,000.
An open-access good is often subject to which of the following problems?
a. Limited entry and restrictive harvest regulations b. High levels of economic rent c. The common-pool problem d. Government regulation