According to the "Rule of 70," How Many Years Will

question 190

Multiple Choice

According to the "Rule of 70," how many years will it take for real GDP per capita to double when the growth rate of real GDP per capita is 5%?

• A)less than 1 year
• B)5 years
• C)14 years
• D)35 years
• E)70 years

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Definitions:

Par Value

Par value is the face value of a bond or the stock value stated in the corporate charter, below which shares cannot be issued.

Stock Dividend

A distribution of additional shares of a company's stock to its shareholders instead of paying a cash dividend.

Stockholders' Equity

Stockholders' equity represents the ownership interest of shareholders in the corporation, calculated as total assets minus total liabilities.

Liabilities

Financial obligations or debts that a company owes to external parties.