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

Understand the concept of yield to maturity and its significance for bond investors.

Comprehend the differing impacts of interest rate changes on bonds based on their coupon rates, maturities, and other characteristics.

Grasp the concept of default risk and its influence on bond interest rates.

Understand the concept of the marginal propensity to consume (MPC) and its calculation.

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Definitions:

High Cohesiveness

The degree to which members of a group or organization are attracted to each other and motivated to stay in the group.

Sucker Effect

A reduction in effort by members of a group based on the perception that others are not making their fair share of effort.

Withhold Effort

Deliberately not giving one's full effort or capability, often in a work context.

Low Cohesiveness

Refers to a lack of unity, solidarity, or agreement among members within a group, which can negatively affect its performance or stability.