If the savings rate of Country A increases from 10% to 20% and technol

If the savings rate of Country A increases from 10% to 20% and technology growth is zero, then the neoclassical model predicts that in the steady state

a. the capital-to-labor ratio will not grow in the long-run but higher than it is now.
b. the capital-to-labor ratio will grow 10% faster.
c. the growth rate of output will be permanently higher.
d. the level of output will be permanently higher.
e. a and d.

ANSWER

E