The Two Factors That Must Be Subtracted from the Percent

question 95

Multiple Choice

The two factors that must be subtracted from the percent change in nominal gross domestic product (GDP) to yield the percent change in per capita real GDP are:

• A) the percent change in prices and the rate of investment.
• B) the percent change in prices and the rate of population growth.
• C) the rate of investment and the rate of savings.
• D) the rate of population growth and the rate of savings.
• E) the rate of investment and the rate of population growth.

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Definitions:

Investment Funds

Pooled funds that collect capital from multiple investors to invest in securities, real estate, or other assets, according to a predetermined strategy.

Capital Rationing

The process by which management allocates funds among competing capital investment proposals.

Capital Investment

Funds invested in a business with the intent to further its objectives, such as acquiring new assets or launching new ventures.

Investment Funds

Pooled funds from multiple investors used to collectively invest in securities such as stocks, bonds, or other assets, managed by professionals.