Between 2013 and 2016, a Country's Nominal GDP Grew by 18

question 147

Essay

Between 2013 and 2016, a country's nominal GDP grew by 18 percent and its inflation rate (based on the chain-weighted price index for GDP) was 11 percent. How fast did real GDP grow over this period?

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Definitions:

Optimal Risky Portfolio

An investment portfolio that offers the highest expected return for a specific level of risk.

Risk-free Rate

The theoretical rate of return on an investment with zero risk, often represented by the yield on government securities.

Lend

To provide money or resources to another party with the expectation of future repayment.

Borrow

The act of receiving something with the intent to return it, often referring to money in the context of loans where interest may be charged.