Scenario: Consider Two Countries: Country a and Country B

Scenario: Consider two countries: Country A and Country B. Both countries have the identical aggregate production functions, populations, and efficiency units of labor, but they have different saving rates. The saving rate is higher in Country A than in Country B.
-Refer to the scenario above.If both economies have identical depreciation rates,then Country A's steady-state equilibrium will ________ Country B's steady-state equilibrium.

A) lie to the right and below
B) lie to the right and above
C) lie to the left and above
D) lie to the left and below

Correct Answer:

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