A Higher Population Growth Rate Can Potentially Lead to a Higher

question 19

Multiple Choice

A higher population growth rate can potentially lead to a higher rate of growth in per capita real GDP if

• A) it leads to an increase in the amount of dead capital.
• B) it leads to greater democracy in a nation.
• C) young workers replace older workers.
• D) there is a greater labor force participation rate.

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Definitions:

Sinking Fund

A fund set aside by a corporation for the purpose of repaying debt or buying back shares, to ensure financial stability and investor confidence.

Seniority Requirements

Rules or conditions that prioritize certain debts or obligations over others, typically in the event of bankruptcy or liquidation.

Zero-Coupon Bond

A type of bond that does not pay interest during its life but is sold at a substantial discount from its face value and pays its full face value at maturity.

Interest Rate Risk

The potential for investment losses that result from a change in interest rates.