The equation that shows how economic growth is compounded over time is which of the following?

  1. The equation that shows how economic growth is compounded over time is which of the following?

A.PCGDPT=N = PCGDPT=1 (1 + GR)N

B.PCGDPT=N = PCGDPT=1 (1 * GR)N

C.PCGDPT=N = PCGDPT=1 (1 + GR)N+1

D.PCGDPT=N = PCGDPT=1 (1/ (1 + GR))N

2.”Katie, a US citizen, decides to save $100 in Bank Polska, a bank in Poland, how is that transaction recorded in the US Balance of Payments?”

A.+Sf

B.-Sf

C.+rF

D.X(+)

3.The money earned in interest for Katie in the example above is recorded as what in the US Balance of Payments?

A.+SF

B.-SF

C.+rF

D.X(+)

4.”Nike, a US owned company, ships $50 billion worth of goods to Europe, how is this transaction recorded in Europe s Balance of payments?”

A.X(+)

B.X(-)

C.IM(+)

D.IM(-)

5.What does rF stand for in the Balance of Payments Equation?

A.net inflow of foreign saving

B.net outflow of foreign saving

C.net inflow of returns on savings

D.net inflow of remittances from source country