When the Rate of Return on the Last Dollar of Investment

question 91

Multiple Choice

When the rate of return on the last dollar of investment is above the rate of time preference, an economy is currently investing too ________ and saving too ________.

• A) much, much
• B) much, little
• C) little, much
• D) little, little

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Definitions:

Breathing

The process of taking air into and expelling it from the lungs to facilitate gas exchange with the internal environment, mainly by bringing in oxygen and flushing out carbon dioxide.

Cerebral Spinal Fluid

A clear, colorless body fluid found in the brain and spinal cord, acting as a cushion for the brain's cortex, providing basic mechanical and immunological protection.

Shock Absorber

A mechanical device designed to absorb and dampen shock impulses in vehicles and machinery, contributing to smoother movement.

CNS

The central nervous system, consisting of the brain and spinal cord, which processes and sends out nerve signals.