We Would Expect That Nations That Devote a Larger Share

question 122

Multiple Choice

We would expect that nations that devote a larger share of GDP to gross private domestic investment

• A) to be highly industrialized nations.
• B) to have a higher savings rate.
• C) to have higher growth rate in potential real GDP.
• D) to have less volatile fluctuations in economic activity.

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Definitions:

Financial Assets

Economic resources or ownerships that are convertible into cash or will generate cash in the future, such as stocks or bonds.

Capital

In finance, it refers to the financial assets or resources that individuals or enterprises use for investing, producing goods, or services.

Real Assets

Physical or tangible assets that have intrinsic value due to their substance and properties, such as real estate, commodities, or natural resources.

Buying a Bond

The act of purchasing a bond, a debt security issued by entities such as governments or corporations, where the issuer owes the holders a debt and is obliged to pay interest.