Which of the Following Is Most Important for the Growth

question 58

Multiple Choice

Which of the following is most important for the growth of income and full realization of an economy's potential?

• A) a positive rate of time preference that motivates a high rate of current consumption
• B) low real interest rates
• C) the use of central planning to allocate investment funds
• D) a mechanism capable of attracting savings and channeling them into investment projects that create wealth

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Definitions:

Net Working Capital

The difference between a company's current assets and its current liabilities, indicating the liquidity and short-term financial health of the company.

Accounts Payable

Money owed by a business to its suppliers for goods or services received that have not been paid for.

Current Liability

A company's debts or obligations that are due to be paid to creditors within one year.