The Rule of 70 Estimates How Long It Will Take

question 23

Multiple Choice

The rule of 70 estimates how long it will take a country to:

• A) double its real GDP per capita.
• B) achieve zero inflation.
• C) reach its maximum production capacity.
• D) double its output.

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Definitions:

Stockholders' Equity

Represents the ownership interest of shareholders in a corporation, calculated as total assets minus total liabilities. Also known as shareholder's equity or owner's equity.

Redemption Value

Redemption value is the amount payable to a security holder upon its maturity or the amount to redeem a bond before its maturity.

Dividends in Arrears

Unpaid dividends on cumulative preferred stock that must be paid out before any dividends can be issued on common stock.

Dividends in Arrears

Dividends on preferred stock that have not been paid in the scheduled time but are still owed to shareholders.