Which of the Following Is Most Likely to Reduce the Rate

question 37

Multiple Choice

Which of the following is most likely to reduce the rate of economic growth?

• A) a high domestic saving rate
• B) investment in human capital
• C) subsidies for R&D activities
• D) slow technological progress

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Definitions:

Taxes

Mandatory financial charges or levies imposed by a government on individuals, corporations, and other entities to fund government spending and various public expenditures.

Minimum Cash Balance

The least amount of cash a company maintains on hand to meet immediate operational expenses.

Net Cash Flow

The overall flow of currency into and out of an enterprise, critically influencing its liquid assets.

Borrow

Borrow refers to the act of receiving something with the intention to return it, often with interest in the case of financial borrowing.