The Catch-Up Effect Refers to the Idea That

question 181

Multiple Choice

The catch-up effect refers to the idea that

• A)saving will always catch-up with investment spending.
• B)it is easier for a country to grow fast and so catch-up if it starts out relatively poor.
• C)population eventually catches-up with increased output.
• D)if investment spending is low, increased saving will help investment to "catch-up."

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Definitions:

Decrease Side

The side of an account that is used to record decreases in value, typically the left side for assets and expense accounts, and the right side for liability, equity, and revenue accounts.

Title

A legal term referring to a person's formal right or ownership of an object, real estate, or intellectual property.

Cash Payments

Outflows of cash by an entity, typically for expenses, goods purchased, or services rendered.

Credit

A financial term describing the ability to borrow money or access goods or services with the understanding that payment will be made in the future.