5 Suppose there are two countries that are identical with the following exception. The saving rate in country A is greater than thesaving rate in country B. Given this information, we know that in the long runAthe capital-labor ratio (K/N) will be greater in B than in A.Beconomic growth will be higher in A than in B.(c) the capital-labor ratio (K/N) will be the same in the two countries.Dthe capital-labor ratio (K/N) will be greater in A than in B.

Here, it is given that country A and country B are identical, buy country A has greater savings rate…

Suppose there are two countries that are identical with the following exception. The saving rate in country A is greater than the saving rate in country B. Given this information, we know that in the long run the capital-labor ratio (K/N) will be greater in B than in A. В economic growth will be higher in A than in B. the capital-labor ratio (K/N) will be the same in the two countries. D the capital-labor ratio (K/N) will be greater in A than in B.

Suppose there are two countries that are identical with the following exception. The saving rate in country A is greater than the saving rate in country B. Given this information, we know that in the long run the capital-labor ratio (K/N) will be greater in B than in A. В economic growth will be higher in A than in B. the capital-labor ratio (K/N) will be the same in the two countries. D the capital-labor ratio (K/N) will be greater in A than in B.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter20: Economic Growth In The Global Economy

Section: Chapter Questions

Problem 5P

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Question

Suppose there are two countries that are identical with the following exception. The saving rate in country A is greater than the
saving rate in country B. Given this information, we know that in the long run
A
the capital-labor ratio (K/N) will be greater in B than in A.
B
economic growth will be higher in A than in B.
(c) the capital-labor ratio (K/N) will be the same in the two countries.
D
the capital-labor ratio (K/N) will be greater in A than in B.

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