Which of the Following Statements Is True

question 49

Multiple Choice

Which of the following statements is true?

• A) A nation with a high saving rate will accumulate capital slowly.
• B) A nation with a high saving rate will accumulate capital rapidly.
• C) In a closed economy, government spending equals zero.
• D) In a closed economy, aggregate consumption equals zero.

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Definitions:

Quarterly

relating to a three-month period or happening every quarter of a year.

Student Loan

A type of loan specifically designed to help students pay for post-secondary education and the associated fees, such as tuition, books, and living expenses.

Compounded Monthly

Interest calculated on a principal amount and then added to that principal sum at the end of each month, effectively increasing the base for future interest calculations.

Quarterly Contributions

Payments or deposits made into an account or investment fund every three months.