In the Textbook Model of Endogenous Growth,long-Run Output Growth Would

question 69

Multiple Choice

In the textbook model of endogenous growth,long-run output growth would decline if there were either a ________ in the saving rate or a ________ in the depreciation rate.

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

---

Definitions:

Cost

The monetary value spent by a company to produce or acquire goods or services, including manufacturing and operating expenses.

Compounded Annually

The process of adding interest to the principal sum of a deposit or loan, with the interest that has been added also earning interest from that point on.

Invest

Dedicating financial resources with the objective of achieving income or profit returns.

Fund

A pool of money set aside for a specific purpose or allocated for investing in various assets.