Which of the Following Will Cause a Reduction in the Steady-State

question 71

Multiple Choice

Which of the following will cause a reduction in the steady-state growth rate of output per worker?

• A)a reduction in the saving rate
• B)an increase in the population growth rate
• C)an increase in the rate of depreciation
• D)an increase in the saving rate
• E) none of the above

---

Definitions:

Derivative Instrument

A financial contract whose value is derived from the value of an underlying asset, index, or rate.

Liabilities

Financial obligations of a business, including money owed to creditors or suppliers.

Financial Instrument

Any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Bank Overdraft

A facility that allows an individual or business to withdraw more money from a bank account than has been deposited, up to an agreed limit.