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 the capital-labor ratio (K/N) will be greater in B than in A. В economic growth will be higher in A than in B. the capital-labor ratio (K/N) will be the same in the two countries. D the capital-labor ratio (K/N) will be greater in A than in B.
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 the capital-labor ratio (K/N) will be greater in B than in A. В economic growth will be higher in A than in B. the capital-labor ratio (K/N) will be the same in the two countries. D the capital-labor ratio (K/N) will be greater in A than in B.
Chapter20: Economic Growth In The Global Economy
Section: Chapter Questions
Problem 5P
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