Because capital is subject to diminishing returns,higher saving and investment do not lead to highera. income in the long run.b. income in the short run.c. growth in the long run.d. growth in the short run.

Essentials of Economics (MindTap Course List)
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ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter17: Production And Growth
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Because capital is subject to diminishing returns,
higher saving and investment do not lead to higher
a. income in the long run.
b. income in the short run.
c. growth in the long run.
d. growth in the short run.

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