home assignments in Chapter 19

# home assignments in Chapter 19 - Multiple Choice Questions...

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Multiple Choice Questions 1. The key indicator of a country's living standard and economic well being is: A. the interest rate. B. nominal GDP per person. C. real GDP. D. real GDP per person.

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A. the payment of interest on the original deposit. B. the interest rate adjusted for the rate of inflation. C. the real rate of interest compounded by the rate of inflation. D. the payment of interest on the original deposit and all accumulated interest. 3. Bank C promises to pay a compound annual interest rate of 6 percent, while Bank S pays a 10 percent simple annual interest rate on deposits. If you deposit \$1,000 in each bank, after 10 years your deposit in Bank C equals _____, while your deposit in Bank S equals ______. A. \$1,060; \$1,100 B. \$1,600; \$2,000 C. \$1,600; \$2,594 D. \$1,791; \$2,000 4. If an economy maintains a small rate of growth for a long period of time, then the size of the economy: A. can only increase by a small amount. B. can increase by a large amount. C. can never double. D. will stay nearly constant. 5. Real GDP per person in both Alpha and Omega equals \$2,000. Over the next 100 years real GDP per person grows at 1.5 percent annual rate in Alpha and at a 2.5 percent annual rate in Omega. After 100 years real GDP person in Alpha is _____ smaller than real GDP per person in Omega. A. \$2,000
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## This note was uploaded on 04/09/2012 for the course MACROECONO 100 taught by Professor Py during the Spring '12 term at Alabama A&M University.

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home assignments in Chapter 19 - Multiple Choice Questions...

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