Decide Whether the Function Is an Exponential Growth or Exponential $$f ( x ) = 2061 \cdot 0.9928 ^ { x }$$

question 13

Multiple Choice

Decide whether the function is an exponential growth or exponential decay function and find the constant percentage
rate of growth or decay.
- $$f ( x ) = 2061 \cdot 0.9928 ^ { x }$$

• A) Exponential growth function; \(0.0072 \%\)
• B) Exponential growth function; \(- 0.72 \%\)
• C) Exponential decay function; \(- 0.72 \%\)
• D) Exponential decay function; \(0.0072 \%\)

Distinguish between various factors that shift the demand and supply curves in the markets for loanable funds and foreign-currency exchange.

Understand the equilibrium condition in the open-economy macroeconomic model and its implications for domestic investment, net capital outflow, and net exports.

Identify the roles of government budget deficits and surpluses in the open-economy macroeconomic model.

Analyze the implications of changes in real interest rates on net capital outflow and the demand for loanable funds.

---

Definitions:

Flotation Costs

Flotation costs are the expenses incurred by a company in issuing new securities, including underwriting fees, legal fees, and registration fees.

Dividend Policy

A dividend policy is a company's approach to distributing profits back to its shareholders, either in the form of cash dividends or stock dividends.

New Shares

These are additional shares of stock issued by a company, expanding the total number of shares on the market and diluting existing shareholders' ownership unless they purchase more.

Shareholders of Record

Individuals or entities that are officially registered and listed as the owners of shares in a company as of the record date.