The total amount of capital available to them must

Reference no: EM13699518

Populations tend to grow over time, meaning there are more workers. In order to maintain a constant level of worker productivity, the total amount of capital available to them must:

1. Increase at a rate at least equal to population growth.

2. Decrease slightly, as this will motivate employees to work harder.

3. Increase at a rate less than the rate of population growth.

4. Increase at a rate equal to the rate of inflation.

5. Stay constant over time, as inflation and population growth tend to cancel each other out.

Reference no: EM13699518

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