From 1980 to 2014,the Average Annual Growth Rate for the Mexican

question 42

Multiple Choice

From 1980 to 2014,the average annual growth rate for the Mexican economy has been 0.8 percent.Based on that growth rate and using the rule of 70,the number of years it will take real GDP per capita to double in Mexico is approximately

• A)9 years.
• B)11 years.
• C)56 years.
• D)88 years.

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Definitions:

Federal Reserve System

The principal banking organization in the United States tasked with handling monetary policy.

Federal Funds Market

A financial market that allows banks to borrow or lend reserves overnight to meet reserve requirements.

Excess Reserves

Assets retained by banks exceeding the compulsory minimum reserves stipulated by central bank regulations.

Deposits

Money placed into a financial institution for safekeeping, which can earn interest over time depending on the type of account.