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14. Assuming diminishing returns, a. the increase in output growth from an increase in the saving rate rises over time, and that, other things the same, rich countries should grow faster than poor ones. b. the increase in output growth from an increase in the saving rate falls over time, and that, other things the same, rich countries should grow faster than poor ones. c. the increase in output growth from an increase in the saving rate rises over time, and that, other things the same, poor countries should grow faster than rich ones. d. the increase in output growth from an increase in the saving rate falls over time, and that, other things the same, poor countries should grow faster than rich ones. 15. During a certain year, the nominal interest rate was 8 percent, the real interest rate was 3 percent, and the CPI was 176.7 at the beginning of the year. The CPI at the end of the year was a. 196.1.
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Assuming diminishing returns,
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d. the increase in output growth from an increase in the saving rate falls over time, and that, other
things the same, poor countries should grow faster than rich ones.

Reason- increase in savings rate increases the output growth and productivity. If all the factor (productivity, population growth, depreciation rate, savings rate etc.) in rich and poor economy are same then poor countries should grow faster than rich countries.

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