If a country's real output is growing at the rate of 8% per annum, it will double in approximately

a) 8 years

b) 22 years

c) 20 years

d) 5 years

e) 9 years

If the equilibrium exchange rate of British pounds and American dollars changes so that more pounds are required to buy dollars then

a) Americans will buy fewer British goods and services

b the American interest rate will rise

c) the dollar has depreciated against the pound

d) the pound has appreciated against the dollar

e) fewer American goods and services will be demanded by the British

The main economic benefit of economic growth is considered to be

a) less environmental damage

b) more equal distribution of income

c) increased hope and optimism

d) higher standards of living

e) more resources for social programs

Which of the following best describes the vicious circle of poverty?

a) government spending, inflation, no incentive to save and invest

b) low GDP, balance of payments deficit, high rate of unemployment

cgrowing GDP, more demand for money, increased interest rates, reduced investment

d) higher income, higher consumption, less investment, incomes fall

e) low incomes, low savings, high population, low productivity, low incomes