Suppose That Twenty-Five Years Ago a Country Had Nominal GDP

question 21

Multiple Choice

Suppose that twenty-five years ago a country had nominal GDP of $1,000,a GDP deflator of 200,and a population of 100.Today it has nominal GDP of $3,000,a GDP deflator of 400,and population of 150.What happened to the real GDP per person?

• A)It more than doubled.
• B)It increased,but it less than doubled.
• C)It was unchanged.
• D)It decreased.

Understand the implications of dividend policy changes on stock value.

Calculate the market rate of return using dividend information.

Apply cumulative and straight voting concepts in corporate governance.

Understand the role of growth rates in the valuation of companies not currently paying dividends.

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Definitions:

Floating

A term used to describe a state where a device or component is not firmly secured and can move or adjust position.

Countershafts

Secondary shafts in a transmission that carry gears to transmit motion from the main shaft to other parts of the machine, often used to adjust the gear ratio.

Synchronizers

Devices in a manual transmission that help match the speed of the gears, facilitating smooth gear changes.

Truck Transmission

The system in a truck that transmits power from the engine to the drive axle, allowing for changes in speed and torque.