The economy of Carl’s country is growing at a rate of 1.75 percent per year. The economy of Miska’s country is growing at a rate of 3 percent per year. Approximately how much longer than Miska’s country will it take for the economy of Carl’s country to double?
a. 1.25 years
b. 16.7 years
c. 56 years
d. 40 years
b. 16.7 years
You might also like to view...
Which of the following would generate a dollar demand for the euro?
a. American exports to Europe. b. European demand for U.S. government bonds. c. American demand for European real estate. d. All of the above are correct.
An increase in the price of good B caused an increase in the demand for good C. This indicates that goods B and C are
A) complements. B) substitutes. C) neither substitutes nor complements. D) normal goods.
According to rational expectations theory, predictable expansionary monetary and fiscal policies to reduce the unemployment rate are:
A. desirable because the result is to lower inflation. B. harmful because the only result is higher inflation. C. ineffective on the price level. D. successful in reducing unemployment in the long run.
If we observe that interest rates rise but real investment spending still increases, what must have happened to the function relating investment to the interest rate?
A. It shifted to the left. B. There was a movement up the function relating investment to the interest rate. C. It shifted to the right. D. There was a movement down the function relating investment to the interest rate.