Suppose That the Level of Capital in the Economy Is

question 141

Multiple Choice

Suppose that the level of capital in the economy is 100 units,the depreciation rate is 5 percent,and investment is equal to 10 units.In this case,

• A) the level of capital will increase.
• B) the economy is in a steady state.
• C) the level of capital will decrease.
• D) the level of output will decrease.
• E) investment is less than net investment.

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Definitions:

Government

An organized group of individuals that has the authority to rule and govern a specific geographic area or country, establishing laws and policies.

Election Process

The sequence of activities involving the submission of candidate names, campaigning, voting, and ultimately determining a winner in a democratic system.

Incentives

Rewards or penalties that motivate individuals or entities to behave in certain ways.

Internal Efficiency

A measure of how effectively an organization uses its resources to produce outputs without wasting materials, time, or energy.