If There Is an Increase in the Future Marginal Product

question 94

Multiple Choice

If there is an increase in the future marginal product of capital in a large open economy,it causes the current account to ________ and saving to ________.

• A)fall;rise
• B)rise;remain unchanged
• C)fall;remain unchanged
• D)rise;rise

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Definitions:

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenditure to the appropriate years.

Telephone Bill

A periodic charge for the use of telephone services, often including the cost of calls, subscription fees, and taxes.

Accounts Payable

Money owed by a company to its creditors or suppliers for goods and services received but not yet paid for.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against an asset over its life up to a specific date.