If Real GDP Grows by 3% in 2009,3

question 108

Multiple Choice

If real GDP grows by 3% in 2009,3.2% in 2010,and 2.5% in 2011,what is the average annual growth rate of real GDP?

• A) 2.6%
• B) 2.9%
• C) 3.1%
• D) 4.2%

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Definitions:

Projected Cash Flows

Estimated amounts of money that are expected to move in and out of a business over a future period.

Managerial Options

Options available to management involving strategic choices about the direction and operations of a company, which can include expansions, acquisitions, or product development.

Real Options

Options with payoffs in real goods.

Operating Cash Flow

Measurement of the cash generated by a company's normal business operations.