QUESTION 37 Because of the of physical capital, the catch up effect states that poorer nations will grow faster than rich nations. O A. profitabilly. O B. diminishing marginal returns. C. economies of scale. O D. investment. QUESTION 38 Increases in budget deficits will lower national saving and raise interest rates, True O False QUESTION 39 The Dow Jones Industrial Average index includes the prices of all securities traded on the New York Stock Exchange True False QUESTION 40 A friend promises to pay you $600 2 years from now if you loan him $500 today. What annual interest rate is your friend offering? OA 7 5% O B. 9.5% C. 10.5% O D. 8.5%