8. Suppose country A and country B are identical except that 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 will be the same in both countries. D. the growth rate of output per capita will be the same in both countries.

8. Suppose country A and country B are identical except that 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 will be the same in both countries. D. the growth rate of output per capita will be the same in both countries.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter20: Economic Growth In The Global Economy

Section: Chapter Questions

Problem 4P

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Question

8. Suppose country A and country B are identical except
that 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 will be the same in both
countries.
D. the growth rate of output per capita will be the same
in both countries.

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