1. Suppose the economy is originally at a steady state where the marginal product of capital is equal to the depreciation rate. If the saving rate of the economy increases, then at the new steady state:
a.
capital per worker will be lower compared to the original steady state.
b.
output per worker will be lower compared to the original steady state.
c.
investment per worker will be lower compared to the original steady state.
d.
consumption per worker will be lower compared to the original steady state.
