Fretonia and libstien are the same except fretonia has a larger capital stock. both countries undertake policies that raise their saving rates to the same higher level. we would expect that:
a. both countries would have permanent increases in their growth rates, but the increase would initially be larger in fretonia.
b. both countries would have permanent increases in their growth rates, but the increase would initially be smaller in fretonia.
c. both countries would have temporary increases in their growth rates, but the increase would be larger in fretonia.
d. both countries would have temporary increases in their growth rates, but the increase would be smaller in fretonia.

Correct option is (d)

Explanation:

Savings and growth are directly proportional. Higher the savings, higher will be the growth in the economy. However, growth experienced by poor country is more than that experienced by rich country.

Here, Fretonia has larger capital stock indicating higher growth as compared to Libstien. So when savings rate is increased in both the countries, Libstien will experience higher growth as compared to Fretonia. Growth would be temporary though as it will not have a long term impact.

anyone below or above ambitious can tell you. so crowns mean brainliest. getting brainliest means your answer needs a good explanation and the person asking the question can understand your answer easily. so say there's a multiple choice question. you don't just want to say your answer is a, hope it . provide evidence and reasoning so that they know that that is the correct answer. a good explanation should have evidence, good reasoning, and your opinion on why you picked that. you don't want to look up their question on the internet and see if you can answer it. pick questions that you 100% know the answer to, so than that way you can provide a better explanation.

best of luck,

the divergent