According to the Neoclassical Growth Model, a One-Time Technological Advance

question 3

Multiple Choice

According to the neoclassical growth model, a one-time technological advance will

• A)shift the investment requirement line up
• B)increase the long-term growth rate of output
• C)have no effect on the steady-state capital-labor ratio
• D)lead to a decrease in the rate of depreciation
• E)none of the above

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Definitions:

Notes Receivable

Financial assets representing amounts owed to a business by entities or individuals, to be paid within a defined term.

Receivables

Money owed to a company by its customers or other parties, typically from sales of goods or services on credit.

Maturity Value

The amount payable to an investor at the end of a debt instrument's holding period, including principal and interest.

Note Receivable

A written promise to pay a specified amount of money, usually with interest, at a future date; it is recorded as an asset on the balance sheet.