Suppose the Following Situation Exists for an Economy: Kt+1

question 18

Multiple Choice

Suppose the following situation exists for an economy: Kt+1 / N < Kt / N.Given this information,we know that

• A)saving per worker equals depreciation per worker in period t.
• B)consumption per worker will tend to fall as the economy adjusts to this situation.
• C)saving per worker is greater than depreciation per worker in period t.
• D)the saving rate increased in period t.
• E)none of the above

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Definitions:

Index Fund

A collective investment scheme designed to follow certain preset rules so that the fund can track a specified basket of underlying investments.

Market Representation

The degree to which a statistical sample or a financial index accurately reflects the broader market or sector it aims to represent.

Portfolio

A collection of investments held by an individual or institution, including stocks, bonds, commodities, and more, to diversify risk.

Active Management

The use of a human element, such as a single manager or a team of managers, to actively manage a fund's portfolio.