It controls the money supply inside a specific economy which helps decrease inflation and get the economy out of a recession if needed
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Answer: C) an increase in the capital/labor ratio and an increase in consumption per worker
Explanation:
An increased in the saving rate in a steady state caused the increased in the consumption for each worker when the ratio of the capital labor become capital stock under the golden rule. As, the rate of the higher saving automatically increased the growth of the economical rate. When there is shifting from lower to higher in the steady state then, the rate of the growth increased.
