Which Statement Is False

question 145

Multiple Choice

Which statement is false?

• A)Technological change is the key to productivity growth.
• B)Productivity is output per unit of input.
• C)The only way to build up capital is to consume more and save more.
• D)In the 1950s,1960s,and 1970s,Americans managed to save about 7-8% of disposable income.

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Definitions:

Annuities

Financial products sold by financial institutions designed to accept and grow funds from an individual and then, upon annuitization, pay out a stream of payments to the individual at a later point in time, typically during retirement.

Cash Flows

The aggregate of cash inflows and outflows within a corporation, impacting its liquid assets.

Ordinary Annuity

A series of equal payments made at equal intervals over a period of time.

Compounding Periods

The frequency with which interest is added to the principal balance of an investment, affecting the total interest earned.