Technological Progress Is One of the Mechanisms by Which Economies

question 38

True/False

Technological progress is one of the mechanisms by which economies can grow.

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Definitions:

Effective Rate

The actual interest rate an individual pays on a loan or earns on an investment, taking into account the effect of compounding.

Compounding

The process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time.

Bank Account

A financial account maintained by a banking institution in which the financial transactions between the bank and a customer are recorded.

Compounded Annually

Interest calculated once per year on the initial principal and the accumulated interest of previous periods.