If Total Factor Productivity Increases by 2 Percent and Total

question 97

Multiple Choice

If total factor productivity increases by 2 percent and total resource growth equals 2 percent, then total output grows by

• A) 0 percent.
• B) 2 percent.
• C) 4 percent.
• D) 6 percent.
• E) 8 percent.

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Definitions:

Coupon Rate

The yearly interest rate that is paid on a bond, shown as a percentage of its nominal value.

Bond Indenture

A legal document that details the terms and conditions between a bond issuer and the bondholders.

Annual Interest Rate

The percentage rate charged on a loan or earned on an investment over the period of one year.

Debt-to-equity Ratio

This financial indicator reveals the relative amounts of debt and equity used by a company to support its asset base.