Consider two economies with diminishing returns to capital. The economies are identical except one has a higher capital per worker than the other. Suppose that the saving rates in both countries increase.
a. Over the next few years, the growth rate of real GDP per worker will be higher in the country that started with more capital per worker.
b. Over the next few years, the growth rate of human capital will be higher in the country that started with less capital per worker.
c. Over the next few years, the growth rate of real GDP per worker will be higher in the country that started with less capital per worker.
d. Over the next few years, the growth rate of technological knowledge will be lower in the country that started with less capital per worker.