Question: Suppose these are two countries that are identical in every way with the following exception: Country A has a higher saving rate than country B.

Suppose these are two countries that are identical in every way with the following exception: Country A has a higher saving rate than country B. Given this information, we know with certainty that

a. the level of consumption per worker will be higher in B.

b. the growth rate will be higher in A than in B.

c. the growth rate will be the same in the two countries.

d. the level of consumption per worker will be higher in A.

Which option is right and why are the others wrong, please explain.

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a the level of consumption per worker will be higher in B This is because when a country has a higher saving rate it means that the amount of money th... View full answer

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