There Has Been Some Concern in the United States That

question 288

Multiple Choice

There has been some concern in the United States that people are NOT saving enough. This is a concern because

• A) decreases in saving lead to decreases in labor productivity.
• B) decreases in saving lead to decreases in investment.
• C) decreases in saving lead to increases in the capital stock.
• D) decreases in saving lead to increases in consumption in the future.

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Definitions:

Accrual Accounting

An accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when cash transactions occur.

Hurdle Rate

The minimum rate of return on a project or investment required by a manager or investor.

Weighted Average Cost

A method of calculating the total cost of goods available for sale, considering the weighted average of all goods.

Payback Period

The amount of time it takes for an investment to generate an amount of income or cash equal to the cost of the investment.