The one determinant of the growth of capital per person that can be affected by policy is the
A)depreciation rate.
B)saving rate.
C)money supply growth.
D)rate of technological change.

Question

Quizplus · Accepted Answer

The saving rate is the only determinant of the growth of capital per person that can be affected by policy. Policies that encourage or discourage saving can have a significant impact on the accumulation of capital, which in turn can lead to increases or decreases in the growth of capital per person. The other determinants listed (depreciation rate, rate of technological change, and money supply growth) are largely outside the control of policy makers.

The One Determinant of the Growth of Capital Per Person