In the Long Run,a Higher Saving Rate

question 59

Multiple Choice

In the long run,a higher saving rate

• A)cannot increase the capital stock.
• B)increases the growth rate of income.
• C)increases the growth rate of productivity.
• D)None of the above is correct.

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Definitions:

Materials Requisitions

A document used to request the transfer of materials from a storeroom to a production area.

Controlling Account

The account in the general ledger that summarizes the balances of the accounts in a subsidiary ledger.

General Ledger

The primary ledger, when used in conjunction with subsidiary ledgers, that contains all of the balance sheet and income statement accounts.

Direct Materials

Raw materials that can be directly traced to the production of a specific product or service.