Question: Assume that two countries have the same per - worker production function y = k 1 2 , neither has population growth nor technological progress,

Assume that two countries have the same per-worker production function y=k12, neither has population growth nor technological progress, depreciation is 5 percent of capital in both countries, and country A saves 10 percent of output whereas country B saves 20 percent. If country A starts out with a capital-labor ratio of 4 and country B starts out with a capital-labor ratio of 2, in the long run:
both country A and country B will have capital-labor ratios of 4.
both country A and country B will have capital-labor ratios of 16.
country A's capital-labor ratio will be 4, whereas country B's will be 16.
country A's capital-labor ratio will be 16, whereas country B's will be 4.
Assume that two countries have the same per -

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