For this question assume that technological progress does not occur.The rate of saving in Canada has generally been greater than the saving rate in the U.S.Given this information,we know that in the long run
A)Canada's growth rate will be greater than the U.S. growth rate.
B)investment per worker in Canada will be no different than U.S. investment per worker.
C)capital per worker in Canada will be no different than U.S. capital per worker.
D)all of the above
E) none of the above

Question

Quizplus · Accepted Answer

In the absence of technological progress, a higher saving rate in Canada compared to the U.S. implies a higher investment in capital per worker, leading to a higher capital per worker ratio in Canada. This does not necessarily translate to a higher long-term growth rate, as growth can also be influenced by other factors such as labor, technology, and efficiency. Therefore, options A, B, and C are not correct by themselves, making E the correct choice.

For This Question Assume That Technological Progress Does Not Occur