All Else Constant, If Real GDP Doubles in 12 Years

question 96

Multiple Choice

All else constant, if real GDP doubles in 12 years, its average annual growth rate is

• A) approximately 6% .
• B) approximately 5%.
• C) approximately 4%.
• D) approximately 3%.

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Definitions:

Hypothecation

The practice of pledging assets as collateral to secure a loan, without transferring ownership of the collateral.

Legal Title

The formal right of ownership of property, recognized and protected by law.

Forecloses

The legal process by which a lender takes possession of a property when the borrower fails to keep up with mortgage payments.

Deficiency

The lack or shortage of something, typically a necessary quantity or quality.