In the Classical system, the interest rate is determined by all of the following except

If productivity is growing at some sustained rate g, then output and capital per worker ________

A) are growing at the same rate g, in a stable steady state B) are growing faster than g, because improving technology encourages a higher rate of saving and investment C) are growing slower than g, because some of the new capital is merely replacing obsolete capital D) are growing faster than g, because productivity does not suffer from diminishing marginal product

Standard and Poor’s gave mortgage-backed securities a ______ rating.

a. AAA b. BBB c. C d. D