Suppose there are two countries that are identical in every way with the following exception: Country A has a lower depreciation rate than country B. Given this information, we know with certainty that: a) the steady state growth rate will be the same in the two countries. b) the steady state growth rate will be higher in A than in B. c) Capital per worker, K/N, will be higher in B. d) Output per worker, Y/N, will be higher in B
Suppose there are two countries that are identical in every way with the following exception: Country A has a lower depreciation rate than country B. Given this information, we know with certainty that: a) the steady state growth rate will be the same in the two countries. b) the steady state growth rate will be higher in A than in B. c) Capital per worker, K/N, will be higher in B. d) Output per worker, Y/N, will be higher in B
Chapter16: Economic Growth
Section: Chapter Questions
Problem 3E
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Suppose there are two countries that are identical in every way with the following exception: Country A has a lower depreciation rate than country B. Given this information, we know with certainty that:
a) the steady state growth rate will be the same in the two countries.
b) the steady state growth rate will be higher in A than in B.
c) Capital per worker, K/N, will be higher in B.
d) Output per worker, Y/N, will be higher in B.
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