When Wages Increase, There Are Likely to Be More Labor-Saving

question 71

True/False

When wages increase, there are likely to be more labor-saving technological changes.

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Definitions:

Captive Finance Company

Wholly owned subsidiary that handles credit extension and receivables financing through commercial paper.

Wholly Owned Subsidiary

A company whose entire stock is held by another company, making it completely controlled by the parent company.

Manufacturer

A type of business or company that produces finished goods from raw materials in large quantities for sale.

Present Value

The present worth of a future amount of money or series of cash flows, considering a certain interest rate.