According to the Endogenous Growth Theory

question 21

Multiple Choice

According to the endogenous growth theory

• A)countries with the same technology and population growth eventually converge to the same steady-state growth rate independent of the savings rate
• B)the steady-state growth rate decreases as the rate of accumulation of factors of production increases
• C)the long-term growth rate of capital is not affected by the savings rate
• D)the steady-state growth rate is affected by the rate at which the factors of production are accumulated
• E)none of the above

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Definitions:

Bond Principal

Bond principal, or face value, is the amount that the issuer agrees to pay the bondholder at maturity, excluding any interest payments.

Coupon Rate

The interest rate on a bond, determined as a percentage of the bond's face value, that the issuer promises to pay the bondholder annually.

Market Rate

The current price or interest rate at which an asset or service can be bought or sold in a particular market.

Secured Bond

Specific assets are pledged as a guarantee of repayment at maturity.