In the R&D model of technological progress, the rate of technological progress is:
A) directly (positively) related to the amount of productive resources.
B) inversely (negatively) related to the cost of innovation.
C) directly related to the expected profits from innovation.
D) inversely related to the interest rate.
E) All of the above.

Question

Quizplus · Accepted Answer

In the R&D model of technological progress, the rate of technological progress is influenced by several factors: it increases with more resources dedicated to R&D (A), decreases with higher costs of innovation (B), increases with higher expected profits from innovation (C), and decreases with higher interest rates, as they make future returns from innovation less attractive (D). Therefore, all of the statements are correct.

In the R&D Model of Technological Progress, the Rate of Technological