Suppose the Economy Is Initially in the Steady State

question 53

Multiple Choice

Suppose the economy is initially in the steady state. A decrease in the depreciation rate (6) will cause:

• A) a decrease in Y/N.
• B) a decrease in C/N.
• C) an increase in K/N.
• D) an increase in the growth rate in the long run.
• E) a decrease in the saving rate.

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Definitions:

Fear Hierarchy

A list of objects or situations that frighten a person, starting with those that are slightly feared and ending with those that are feared greatly; used in systematic desensitization.

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome.

DSM-5

The fifth edition of the Diagnostic and Statistical Manual of Mental Disorders, a comprehensive classification of mental disorders published by the American Psychiatric Association.

Obsessive-compulsive-related Disorders

A group of psychiatric disorders characterized by obsessive thoughts and compulsive actions, often causing significant distress and impairing daily functioning.