Data from Most Industrialized Countries Show That Countries with High

question 53

Multiple Choice

Data from most industrialized countries show that countries with high investment rates (as a percentage of GDP) tend to be countries

• A)with the highest levels of per capita GDP.
• B)with the highest levels of GDP.
• C)with high rates of economic growth.
• D)with the lowest rate of national saving.
• E)with a negative relationship between investment and the rate of economic growth.

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Definitions:

Floating-rate Debt

Floating-rate Debt refers to loans or bonds with a variable interest rate, which adjusts periodically based on a benchmark interest rate or index.

LIBOR

The London Interbank Offered Rate, which is a benchmark rate that some of the world’s leading banks charge each other for short-term loans.

Interest Expense

The cost incurred by an entity for borrowed funds over a period, including loans, bonds, or credit lines.

Floating-rate Debt

A form of debt where the interest rate varies over time based on a benchmark interest rate or index.