If the economy has more capital than in the Golden Rule steady state, reducing the saving rate will increase both steady-state income and steady-state consumption. increase steady-state income but decrease steady-state consumption. decrease steady-state income but increase steady-state consumption. O decrease both steady-state income and steady-state consumption.

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If the economy has more capital than in the Golden Rule steady state, reducing the saving rate will
increase both steady-state income and steady-state consumption.
increase steady-state income but decrease steady-state consumption.
decrease steady-state income but increase steady-state consumption.
O decrease both steady-state income and steady-state consumption.
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Transcribed Image Text

If the economy has more capital than in the Golden Rule steady state, reducing the saving rate will increase both steady-state income and steady-state consumption. increase steady-state income but decrease steady-state consumption. decrease steady-state income but increase steady-state consumption. O decrease both steady-state income and steady-state consumption.