Suppose the Economy Is Operating at the Steady State

question 45

Multiple Choice

Suppose the economy is operating at the steady state. Which of the following is true given this information?

• A) Steady state saving is more than total consumption.
• B) Steady state saving is just sufficient to cover depreciation.
• C) Steady state saving exceeds depreciation each year by a constant amount.
• D) Steady state saving equals consumption.
• E) Steady state saving is less than total consumption.

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Definitions:

Sarbanes Oxley

A U.S. law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures, influenced by financial scandals.

U.S. Exchanges

Marketplaces in the United States where securities, commodities, derivatives, and other financial instruments are traded.

U.S Companies

Businesses or corporations that are registered and operate within the United States.

Outstanding Checks

Checks that have been written and recorded in the issuer's ledger but have not yet been cleared by the bank.