An Increase in the __________ Leads to a Higher Steady-State

question 89

Multiple Choice

An increase in the __________ leads to a higher steady-state capital stock;and a decline in __________ leads to a lower steady-state capital stock.

• A)saving rate;depreciation rate
• B)saving rate;productivity
• C)productivity;the initial capital stock
• D)depreciation rate;the labor stock
• E)none of the above

---

Definitions:

Assets

Valuable items, resources, or properties owned by an individual, corporation, or country, which have economic value and can be converted into cash.

Liabilities

Financial obligations or debts that a company owes to others, which are expected to be paid in the future.

Economic Income

The total value of all income received over a period of time, including wages, rents, profits, and transfer payments.

Taxable Income

The amount of income used to calculate how much tax an individual or a company owes to the government in a specific period.