Which of the Following Theories Predicts That There Can Be

question 8

Multiple Choice

Which of the following theories predicts that there can be no sustained rise in real GDP per person above the subsistence level?
I. Classical growth theory
ii. New growth theory

• A)i only
• B)ii only
• C)Neither i nor ii
• D)Both i and ii
• E)None of the above because whether the rise in real GDP per person is sustained or not depends on what created the rise.

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock and typically dividends that are paid out before those to common stockholders.

Annual Dividend

The total amount of dividend payments a company makes to its shareholders over a single fiscal year.

Return

The income generated on an investment over a particular period of time, expressed as a percentage of the investment's initial cost.

Call Option

A financial contract giving the buyer the right, but not the obligation, to purchase a stock, bond, commodity, or other asset at a specified price within a specific time period.