Which of the Following Statements Is Correct for a Society

question 127

Multiple Choice

Which of the following statements is correct for a society that emphasizes the production of capital goods over that of consumer goods?

• A)The society could enjoy the same quantity of capital goods and a larger quantity of consumer goods in the future.
• B)The society will have to save more now than a society that did not emphasize the production of capital goods.
• C)The society could enjoy the same quantity of consumer goods and a larger quantity of capital goods in the future.
• D)The society will grow faster than a society that emphasizes the production of consumer goods.
• E)The society will have to save less now than a society that did not emphasize the production of capital goods.

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Definitions:

Semiannually

Happening biannually or once every six months.

Market Interest Rate

The prevailing rate of interest available in the market on debt, which varies with market conditions and the term and risk of the investment.

Debt-To-Equity Ratio

An indicator of how a company's assets are financed, comparing the use of debt to shareholders' equity.

Total Liabilities

The sum of all financial obligations a company owes to outside parties.