Suppose There Are Two Countries That Are Identical with the Following

question 64

Multiple Choice

Suppose there are two countries that are identical with the following exception.The saving rate in country A is greater than the saving rate in country B.Given this information,we know that in the long run

• A)the growth rate of output per capita will be greater in B than in A.
• B)the growth rate of output per capita will be greater in A than in B.
• C)the capital-labor ratios (K / N)will be the same in both countries.
• D)the growth rate of output per capita will be the same in both countries.

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Definitions:

Salaries Expense

The total amount paid to employees for services rendered during a specific period, reflected as an expense in financial statements.

Fiscal Year

A one-year period used for financial reporting and budgeting purposes, not necessarily coinciding with the calendar year.

Accrued Revenue

Income that has been earned but not yet received, recorded in the accounting period it is earned rather than when payment is received.

Assets

Resources owned or controlled by a business, expected to generate future economic benefit.