Suppose per capita real GDP grows by 10% per year. Based on the Rule of 70, approximately how many years will it take for the level of per capita real GDP to double?
A. 7 years
B. 70 years
C. 10 years
D. none of these
Answer: A
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________ can trigger an expansion
A) An increase in autonomous expenditure B) A decrease in induced expenditure C) Equality between aggregate expenditure and real GDP D) A downward shift of the AE line E) A decrease in autonomous expenditure
Changes to the price level affect consumers’ purchasing power; therefore, it will most likely impact their
A. purchases on credit. B. remittances. C. wealth. D. disposable income.
In order to change the money supply, the Fed might use all of the following tools except:
A. discount window. B. reserve requirement. C. open market operations. D. deficit spending.
If the interest rate were 10 percent, how much would people be willing to pay for a stock that was certain to yield a $2 per share stream of net earnings continuously in the future?
a. $2 b. $10 c. $20 d. $100