Suppose Per Capita Real GDP Grows by 7% Per Year

question 48

Multiple Choice

Suppose per capita real GDP grows by 7% per year. Based on the Rule of 70, approximately how many years will it take for the level of per capita real GDP to double?

• A)4.9 years
• B)7 years
• C)10 years
• D)none of the above

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Definitions:

Market Values

The value at which an asset is exchanged in a competitive auction scenario.

Market-To-Book Ratio

A financial ratio comparing a company's market value to its book value, used to assess valuation.

Market Price Per Share

The current price at which a share of stock can be bought or sold on the open market.

Book Value Per Share

A financial measure calculated by dividing a company's book value by its total number of outstanding shares.