In a Steady-State,sustained Increases in the Capital-To-Labor Ratio Are Only

question 28

Multiple Choice

In a steady-state,sustained increases in the capital-to-labor ratio are only possible if

• A)the savings rate increases.
• B)population growth decreases.
• C)depreciation decreases.
• D)technology increases.
• E)all of the above.

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Definitions:

Per Month

A term used to describe an action or event that occurs once every month.

Quarterly Compounding

A financial process where interest is added to the principal sum of a deposit or loan at the end of each quarter, resulting in the interest bearing interest.

Effective Annual Rate

The annual return on an investment or loan taking compounding into account, expressed as a percentage.

Compounded Annually

This is an interest calculation method where interest is added to the principal once a year.