Question: nees quick answer Question 33 2 pts Consider two countries, country A and country B, identical except for their TFP and savings rate. You know

 nees quick answer Question 33 2 pts Consider two countries, country

nees quick answer

A and country B, identical except for their TFP and savings rate.

Question 33 2 pts Consider two countries, country A and country B, identical except for their TFP and savings rate. You know that hat AA = 2 and SA = 3 X 8 B. Then, in the steady state, which of the following is true? AB Oy = 6" y'B Oy =by'B Oy = 8" y'B Question 34 2 pts Consider a Solow economy, in which one-fourth of production is paid to capital. Households suddenly start saving less, which reduces the saving rate of the economy from 0.35 down to 0.30. What happens to the new steady state consumption level? O It increases. O It falls. O It is not affected by the fall in the saving rate. O Not enough information is given

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