Countries That Have Lower Levels of Real GDP Per Person

question 237

Multiple Choice

Countries that have lower levels of real GDP per person than the US,

• A)tend to have growth rates that are higher than that of the US.
• B)tend to have growth rates that are about the same as the US.
• C)tend to have growth rates that are lower than that of the US.
• D)have growth rates that are higher than the US in some cases and lower in other cases.

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Definitions:

Arbitrage

The simultaneous purchase and sale of the same assets in different markets to exploit price differences for a profit.

Risk-free Rate

The expected yield from an investment that carries no risk of losing money, often identified by the returns on government bonds.

Futures Market

A financial exchange where people can trade standardized futures contracts; that is, a contract to buy specific quantities of a commodity or financial instrument at a specified price with delivery set at a specified time in the future.

Stock Index Futures

Futures contracts that obligate the buyer to purchase or the seller to sell a specific stock index at a predetermined future date and price.