Assume That an Economy Experiences Both Positive Population Growth and Technological

question 52

Multiple Choice

Assume that an economy experiences both positive population growth and technological progress.A reduction in the saving rate will cause

• A)no change in K / NA.
• B)a permanent reduction in the rate of growth of output per worker.
• C)a permanent reduction in the rate of growth of output.
• D)no change in Y / NA.
• E) none of the above

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Definitions:

Capital Expenditure Budget

The capital expenditure budget outlines planned investments in long-term assets, including equipment, property, and other significant infrastructure projects.

Minimum Cash Balance

The smallest amount of cash that a company decides to hold in its accounts to ensure liquidity and smooth operations.

Cash Loan

A loan given to a borrower in cash, which must be repaid over a specified period along with interest.

Budgeted Depreciation

An estimate of the depreciation expenses for assets during a specific period as planned in a budget.