Comparing steady states, which of the following is a result of a ...

[Capo]

Comparing steady states, which of the following is a result of a permanent increase in the saving rate, but is not a consequence of a one-time increase in productivity?
 
  A) an increase in consumption per worker
  B) a decrease in the marginal product of capital
  C) an increase in output per worker
  D) an increase in the growth rate of output

Question 2

In the classical model, an increase in saving is assumed to increase
 
  a. the demand for loanable funds, which decreases interest rates.
  b. the supply of loanable funds, which decreases interest rates.
  c. both the demand for money and loanable funds, which reduces interest rates.
  d. neither the demand for money nor bonds, leaving interest rates unchanged.

[dellikani2015]

Answer to Question 1

B

Answer to Question 2

B

[Capo]

Correct answers!

[dellikani2015]

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