Holding Other Factors Constant, a Technological Improvement That Increases the Marginal

question 93

Multiple Choice

Holding other factors constant, a technological improvement that increases the marginal product of capital will:

• A)increase national saving.
• B)decrease national saving.
• C)increase investment.
• D)decrease investment.

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Definitions:

S-Shaped

Describes a curve or function that depicts an initial slow growth, followed by rapid acceleration, and then a plateau or leveling off, commonly found in logistic growth models.

Convex

A shape or function that curves outward or has a bulge, often used in economics and mathematics to describe certain types of optimization problems or preferences.

Confidence Index

A measure, often used in financial contexts, reflecting the confidence or optimism that investors have in the financial markets or in the economy as a whole.

Bond Yields

The return an investor realizes on a bond, calculated as the coupon payments received from the bond relative to its price or face value.