Which of the Following Is True for a Country Like

question 88

Multiple Choice

Which of the following is true for a country like China that is heavily reliant on external demand?

• A) The Chinese economy is more likely to be affected by changes in consumption in other countries.
• B) An decrease in China's GDP will affect all the sectors of the economy equally.
• C) The driving force behind economic growth in China is domestic consumption and investment.
• D) Net exports as a percentage of GDP in China is likely to be low.

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Definitions:

Hurdle Rate

The minimum rate of return on a project or investment required by a manager or investor to proceed with the project.

Present Value

The present value of a future amount of money or series of cash flows, using a certain return rate.

Payment Options

The various methods by which a buyer can fulfill a financial obligation to a seller, including cash, credit, and electronic transfers.

Compounding

The process where the value of an investment increases because the interest it earns itself earns interest.