If Real GDP Doubles in 12 Years, Its Average Annual

question 63

Multiple Choice

If real GDP doubles in 12 years, its average annual growth rate is approximately:

• A) 6%.
• B) 5%.
• C) 4%.
• D) 3%.

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Definitions:

Direct Exchange

Trading goods or services directly between parties without using money as an intermediary.

Eurobond

A bond issued in a currency other than the currency of the country or market in which it is issued.

International Bond

A debt investment that is issued in a country by a non-domestic entity, potentially denominated in a foreign currency, and sold to investors from around the world.

Purchasing Power Parity

Purchasing power parity is an economic theory that compares different countries' currencies through a "basket of goods" approach, assuming that exchange rates should adjust so that identical goods cost the same in different countries.