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Reading 23: Capital Market Expectations- LOS j~ Q1-3

 

LOS j: Identify and interpret the components of economic growth trends and demonstrate the application of economic growth trend analysis to the formulation of capital market expectations.

Q1. Which of the following is NOT a substantial component of the change in the long-term growth rate in an economy?

A)   Changes in employment levels.

B)   Changes in consumer spending.

C)   Changes in spending on new capital inputs.

 

Q2. Which of the following is NOT a governmental structural policy that would promote the long-term growth in an economy?

A)   A promotion of competition.

B)   A redistributive tax system.

C)   Minimal government interference in the economy.

 

Q3. If population growth is expected to grow by 3%, labor force participation is expected to grow by 0.25%, spending on new capital inputs is projected to grow at 2.75% and total factor productivity will grow by 0.75%. What is the long-term projected growth rate?

A)   6.75%.

B)   5.75%.

C)   6.00%.

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回复:(youzizhang)[2009] Session 6 - Reading 23:...

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