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A Neoclassical Growth Model Would Predict That If the Rates

Question 31

Multiple Choice

A neoclassical growth model would predict that if the rates of both population growth and saving increase, then the steady-state capital-labor ratio will


A) increase
B) decrease
C) stay the same
D) temporarily increase, but then go back to its original level
E) most likely change but we cannot say for sure how

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