Sources of Increasing Returns That Help Raise Productivity Growth Include

question 107

Multiple Choice

Sources of increasing returns that help raise productivity growth include the following, except

• A) more specialized inputs.
• B) the spreading of development costs.
• C) network effects.
• D) low unemployment.

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Definitions:

Forward Rate

The future interest rate agreed upon in a forward contract, which is a derivative financial instrument.

Covered Interest Arbitrage

An investment strategy where an investor takes advantage of the interest rate differential between two countries while hedging exchange rate risk.

Nominal Risk-Free Rate

The nominal risk-free rate is the rate of return on an investment with no risk of financial loss, not adjusted for inflation.

Forward Rate

The agreed-upon interest rate for a financial transaction that will be conducted at a future date.