Using the rule of 72, determine how long it would take for real GDP to double if it grew at a constant growth rate of 8 percent.
A. 8 years.
B. 9 years.
C. 576 years.
D. 72 years.
Answer: B
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In reading the stock market quotes in the newspaper, the column with the heading "Ticker" gives the
A. number of shares of the stock traded that day. B. the full name of the company whose stock is being studied. C. stock symbol for the company. D. highest price the stock has sold for in the past year.
Bonds with ________ tend to have lower interest rates than bonds with ________
A) high liquidity; low liquidity B) high default risk; low default risk C) longer maturity; shorter maturity D) high tax burdens on their interest; low tax burdens on their interest
Which of the following is NOT a characteristic of a perfectly competitive market?
A. Each firm in the market sells a somewhat different variant of the good. B. There are many sellers, each of which sells only a small fraction of the total quantity exchanged. C. Sellers can easily buy and sell the productive resources needed to enter the market. D. Buyers and sellers are well-informed.
Which of the following statements about crowding out is false?
A. It is not caused by a budget surplus. B. It is caused by a budget deficit. C. It can completely offset the multiplier. D. It affects interest rates and not economic growth.