If GDP Grows at a Rate of 3% Per Year,approximately

question 247

Multiple Choice

If GDP grows at a rate of 3% per year,approximately how long will it take for GDP to double in size?

• A)12 years
• B)21 years
• C)23 years
• D)35 years

Analyze the relationship between exchange rates, trade balance, and economic growth.

Recognize the impact of international asset transactions on exchange rates and trade balances.

Understand the concept and purpose of foreign exchange reserves in the context of fixed exchange rate policies.

Distinguish between fixed (or pegged) and flexible exchange rate policies.

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Definitions:

Scoria Cone

A type of volcano characterized by its cone-shaped peak, formed from volcanic cinders that fall around a central vent.

Igneous Eruptions

Volcanic events that involve the expulsion of magma from the Earth's interior, forming igneous rocks upon cooling.

Flood Basalts

Vast plains of basaltic lava that cover large areas of the Earth's surface, resulting from extensive eruptions.

Rhyolite Ash

Fine volcanic ash produced from explosive eruptions of rhyolite magma, characterized by high silica content.