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Consider the AK model seen in lectures. An increases in the savings rate a. leads to a permanent increase in the growth rate of income

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Consider the AK model seen in lectures. An increases in the savings rate a. leads to a permanent increase in the growth rate of income per worker 13. leads to a higher growth rate of income per worker until the economy adjusts to the new steady state, but has no effect on its steady state growth rate 0. leads to a permanent drop in the growth rate of income per worker d. leads to a lower growth rate of income per worker until the economy adjusts to the new steady state, but has no effect on its steady state growth rate

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