Increased Productivity Due to Technology Has

question 83

Multiple Choice

Increased productivity due to technology has

• A) increased corporations' reliance on debt for capital expansion needs.
• B) created larger asset values on the firm's historical balance sheet.
• C) made it cheaper (in terms of interest costs and timing of when money is transferred) for firms to borrow money.
• D) helped to keep corporate costs in check.

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Definitions:

Real GDP

The total value of all goods and services produced by an economy over a specific time period, adjusted for inflation.

Price Level

The mean of present prices for all goods and services produced within an economy, typically gauged by a price index.

Exchange Rate

the value of one currency for the purpose of conversion to another, showing how much of one currency can be exchanged for a unit of another currency.

Velocity of Money

The rate at which money circulates in the economy, indicating the number of times a unit of currency is used to purchase goods and services within a given timeframe.