A higher rate of saving at the national level will, in the long-run ________.
A) cause a decrease in levels of capital and output
B) have no effect on levels of capital and output
C) lead to an increase in population growth
D) cause an increase in levels of capital and output
Question 2
In general equilibrium
A) supply equals demand for all goods in all periods.
B) supply equals demand for most goods in all periods.
C) supply equals demand in present value, but not in all periods.
D) prices are exogenous.
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