Explain How Each of the Following Is Related to the Rates

question 26

Essay

Explain how each of the following is related to the rates of productivity and economic growth in an economy:
(a) The level of investment spending
(b) The extent of government regulation
(c) The level of spending on research and development
(d) The saving rate

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Definitions:

Compounded Monthly

The process of calculating interest on an initial principal, which also includes all of the accumulated interest from previous periods on a loan or investment, with the compounding occurring on a monthly basis.

Effective Annual Rate

The interest rate on an investment or loan that considers the effects of compounding over a given time period.

Compounded Quarterly

An investment or loan interest calculation method where interest is added to the principal four times a year.

Effective Annual Rate

The interest rate on an investment or loan that is annualized, taking compounding into account.