Which of the following is not an implication of secular stagnation?
A)Economic growth will resume as soon as savings increase.
B)Economic growth requires higher levels of population growth.
C)Falling costs of capital reduce the interest rate.
D)Modern technology firms reduced need for capital reduces productivity.

Question

Quizplus · Accepted Answer

Secular stagnation implies a long-term trend of low productivity and economic growth, which cannot be easily resolved by increases in savings alone. Option A suggests that economic growth will resume as soon as savings increase, which is not necessarily true under secular stagnation.

Which of the Following Is Not an Implication of Secular