1. Which of the following will cause an increase in the steady-state growth rate
ID: 1124923 • Letter: 1
Question
1. Which of the following will cause an increase in the steady-state growth rate of capital? C an increase in the saving rate an increase in the population growth rate a temporary increase in technolo all of the above none of the above gical progress O 2. High growth in the rich countries from 1985 to 2014 was most likely due to O a high savings rate. O high capital accumulation. C technological progress O high consumption rates monetary policy 3. Research suggests that the relatively higher rate of growth of output per capita between in China between 1996 and 2011 was the result of which of the following? O an increase in the rate of technological progress an increase in K/NA C an increase in the rate of growth ofN C an increase in the saving rate both A and DExplanation / Answer
1. (i) An increase in the saving rate.
(A higher saving rate results in a higher steady-state capital stock and a higher level of output).
2. (i) High saving rate.
(Increase in saving rate increases capital accumulation and hence the growth rate).
3. (e) Both A and D.
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