The rate at which the capital stock declines due to either capital goods becoming worn out by use or becoming obsolete is called the

Question

Quizplus · Accepted Answer

The rate at which the capital stock declines due to wear and tear or obsolescence is known as the depreciation rate. Therefore, option C is the correct answer. Choice A (amortization rate) typically refers to the process of paying off a loan over time, while option B (terminal rate) and D (steady-state rate) are not relevant to the concept of capital depreciation.

The Rate at Which the Capital Stock Declines Due to Either