Draw a Graph of "Catch-Up" That Shows Where You Would

question 210

Essay

Draw a graph of "catch-up" that shows where you would expect to see a country with low saving rates and low levels of health and education.How would you expect real GDP per capita to grow in a country like this? Explain.

---

Definitions:

Repurchase Shares

The buying back of a company's own shares from the marketplace, which can increase shareholder value by reducing the number of outstanding shares.

Debt-Equity Ratio

The ratio that delineates the usage of shareholder equity and debt in the financing of company assets.

Pre-Tax Cost

The expense or cost associated with an activity or asset before the application of taxes, often used in financial analysis.

Required Return

The minimum expected return investors demand for investing in a security or project.