An Increase in ________ Leads to a Higher Steady-State Capital

question 62

Multiple Choice

An increase in ________ leads to a higher steady-state capital stock, and a decline in ________ leads to a lower steady-state capital stock.

• A) the saving rate; the depreciation rate
• B) the saving rate; productivity
• C) productivity; the initial capital stock
• D) the depreciation rate; the labor stock
• E) None of these answers is correct.

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Definitions:

USS Monitor

A significant ironclad warship of the Union during the American Civil War, renowned for its pivotal role in the Battle of Hampton Roads in 1862, marking a revolution in naval warfare.

CSS Virginia

A historic ironclad warship of the Confederate States Navy in the American Civil War, notably partaking in the Battle of Hampton Roads in 1862.

American Red Cross

A humanitarian organization that provides emergency assistance, disaster relief, and education inside the United States, founded by Clara Barton in 1881.

U.S. Sanitary Commission

A private relief agency founded in 1861 to support sick and wounded soldiers of the U.S. Army during the American Civil War, precursor to modern Red Cross activities.