In the United States from 1929 to 1933, Real GDP

question 106

Multiple Choice

In the United States from 1929 to 1933, real GDP _____________ and the unemployment rate ________________.

• A) declined by 27 percent; rose to 25 percent.
• B) increased by 21 percent; fell to 2 percent.
• C) declined by 21 percent; rose to 27 percent.
• D) declined by 40 percent; rose to 50 percent.

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Definitions:

Liquidity

The simplicity of transforming an asset or security into immediate cash without impacting its market value.

Internal Rate of Return

The discount rate that makes the net present value (NPV) of all cash flows (both positive and negative) from a particular project or investment equal to zero.

Required Return

The smallest percentage of annual gain required from an investment to attract individuals or corporations to fund a certain project or venture.

Wealth

The abundance of valuable financial assets or physical possessions which can be converted into a form that can be used for transactions.