Which of the Following Is Likely to Cause a Decrease

question 134

Multiple Choice

Which of the following is likely to cause a decrease in labor productivity?

• A)An increase in student achievement scores
• B)A service sector that is growing slower than the growth rate of GDP
• C)An increased spending on research and development
• D)A decrease in capital formation
• E)A low federal budget deficit

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Definitions:

Discounting

The process of determining the present value of a payment or a stream of payments that is to be received in the future.

Opposite

In the context of numbers, it refers to the additive inverse of a number, which when added to the original number, results in zero.

Compounded Quarterly

A method where interest is calculated and added to the principal balance four times a year, affecting the total interest accrued over time.

Promissory Note

An economic tool comprising a formal pledge by one party to give a specific amount of money to another, redeemable upon request or at a predetermined time.