In 1996,the Growth Rate of Real GDP Was 2

question 102

Multiple Choice

In 1996,the growth rate of real GDP was 2.46 percent and the inflation rate was 1.94 percent.The growth of nominal GDP was

• A)4.4 percent.
• B)0.52 percent.
• C)3.88 percent.
• D)4.92 percent.

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Definitions:

Zero-coupon Bonds

Bonds that do not pay periodic interest payments and are instead issued at a deep discount to their face value, maturing at par.

Treasury Bill

A Treasury Bill (T-Bill) is a short-term government debt obligation backed by the Treasury Department with a maturity of one year or less.

Par Value

The nominal or face value of a bond, share of stock, or coupon as indicated on a certificate or instrument.

Effective Annual Yield

The return on an investment expressed as an annual rate, taking into account the effect of compounding interest.