Suppose Real GDP in a Country Called Gambria Is Increasing

question 17

Multiple Choice

Suppose real GDP in a country called Gambria is increasing by 5% annually and the population of Gambria is increasing by 2% annually. Then, :

• A) Gambria's population must be declining.
• B) Gambria will have to export more than it imports.
• C) the general level of prices in Gambria must be increasing.
• D) Gambria's per capita real GDP will be increasing.

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Definitions:

Oversubscription Privilege

A right given to current shareholders to purchase more shares of a new issue before it is offered to the public, usually at a discount.

Standby Privilege

A feature that may accompany preferred shares or bonds, allowing the holder the right to purchase additional shares at a fixed price.

Open Offer

An invitation by a company to its shareholders to purchase additional shares directly from the company at a specified price.

Seasoned Equity Issue

The process by which a company that is already publicly traded issues additional shares to raise new equity capital.