An Increase in ________ Would Lead to an Increase in Long-Run

question 128

Multiple Choice

An increase in ________ would lead to an increase in long-run economic growth.

• A) consumer spending and borrowing
• B) government taxes and fees
• C) resources and technology
• D) imports and exports
• E) prices and interest rates

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Definitions:

Contract Interest Rate

The interest rate specified in a loan agreement or contract, typically fixed for the life of the loan.

Face Value

The nominal value or dollar value of a security stated by the issuer, also known as par value, especially relevant for bonds and stock certificates.

Market Rate

The prevailing interest rate available in the marketplace on investments or loans, subject to changes based on supply and demand and economic conditions.

Discount

A reduction from the usual cost of something, often used to encourage sales or purchases.