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What is one of the consequences of accumulating capital?


A) Accumulating capital requires that society sacrifice consumption in the present.
B) Accumulating capital allows society to consume more in the present.
C) Accumulating capital decreases saving rates.
D) Accumulating capital increases income inequality.

E) C) and D)
F) A) and B)

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According to the traditional view of the production process, how does output per worker change when capital per worker increases?


A) It increases. This increase is larger at larger values of capital per worker.
B) It increases. This increase is smaller at larger values of capital per worker.
C) It increases. This increase is the same at all values of capital per worker.
D) It decreases. This decrease is larger at larger values of capital per worker.

E) A) and C)
F) A) and B)

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