Use the Table Below to Answer This Question

question 142

Multiple Choice

Use the table below to answer this question. The data show national savings rates as a percentage of GDP; the growth rate of real GDP per person; and birth rates in 2006.

www.econstats.com; www.os-connect.com
If the data support the neoclassical growth theory, we would expect to see

• A) Japan with the highest economic growth rate because the high saving means that more capital is accumulated.
• B) the United States with the highest economic growth rate because a lower savings rate means more income is spent on consumption.
• C) Canada with the highest economic growth rate because it has the highest real GDP per person.
• D) the United States with the highest economic growth rate because it has the highest birth rate.

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Definitions:

Immediate Exercise

The action of exercising an option right away, rather than waiting until closer to the expiration date.

Dividend Yield

The ratio of a company's annual dividend payments to its share price, indicating the income generated from stock investment.

Volatility

A statistical measure of the dispersion of returns for a given security or market index, often used to quantify the risk of investment.

Time to Maturity

The period left until the final payment date of a financial instrument, usually a bond or a loan.