If an Economy Is in the Steady State,then

question 22

Multiple Choice

If an economy is in the steady state,then

• A) net investment is zero.
• B) depreciation is zero.
• C) investment is zero.
• D) the marginal product of capital is zero.
• E) there are no diminishing returns.

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Definitions:

Liquidity Ratio

A financial metric used to determine an entity's ability to pay off its short-term obligations with its liquid assets.

Asset Management Ratio

Financial ratios that measure how effectively a company manages its assets to produce sales and maximize profitability.

Leverage Ratio

A financial metric indicating the level of debt relative to equity or assets, used to assess a company's ability to meet financial obligations.

Project Management

The application of processes, methods, skills, knowledge and experience to achieve specific project objectives according to the project acceptance criteria within agreed parameters.