An increase in the saving rate in a steady-state economy would cause:

A. An upward shift in the saving per worker curve and an increase in the steady-state capital per worker.

B. A downward shift in the saving per worker curve and a decrease in the steady-state capital per worker.

C. A rightward movement along the saving per worker curve and an increase in the steady-state capital per worker.

D. A leftward movement along the saving per worker curve and a decrease in the steady-state capital per worker.

An increase in the saving rate in a steady state economy would cause a leftward movement along the saving per worker curve and a decrease in the steady state capital per worker.

Explanation:

An increase in the saving rate in a steady state economy would cause a leftward movement along the saving per worker curve and a decrease in the steady state capital per worker. When the saving rate increases, individuals save a larger portion of their income, leaving less to invest in capital. As a result, the steady state capital per worker decreases.

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