Suppose there are two countries that are identical with the following exception. The saving rate in country A is greater than the saving rate in country B. Given this information, we know that in the long run
A. the growth rate of output per capita will be greater in B than in A.
B. the growth rate of output per capita will be greater in A than in B.
C. the capital-labor ratios (K/N) will be the same in both countries.
D. the growth rate of output per capita will be the same in both countries.
Answer:D
Suppose there are two countries that are identical with the following exception. The saving rate in country A is greater than the saving rate in country B. Given this information, we know that in the long run
A. the growth rate of output per capita will be greater in B than in A. B. the growth rate of output per capita will be greater in A than in B. C. the capital-labor ratios (K/N) will be the same in both countries. D. the growth rate of output per capita will be the same in both countries.