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Question 35 2 pts Consider the following statements regarding the Solow model: 1. If the saving rate of the economy decreases, consumption will fall immediately and over time until it reaches the new steady state. 2. An increase in the saving rate of the economy will always increase investment. Only statement 2. is true O Only statement 1. is true O Both statements are false Both statements are true Question 36 2 pts Country A and country B had the same level of output per capita in year t, however Country A has been growing faster than B for the last 10 years. Which of the following could be explanations for these dynamics according to the Solow Model? Mark all that apply. Country A was further away from its steady state level in period t Country A could have experienced increases in technology/productivity Country B has a lower steady state than country A O Country A had an increase in its depreciation rate