1. According to the rule of 70 and 72, a 10% annual increase in real GDP would lead to doubling of real gdp in how many years?
2. If the marginal propensity to consume is 0.93 what would the impact on GDP of an increase of government spending of $450000000 in the first year?
3. According to the future value calculation: an individual and his wife want to retire at 62 on his birthday. Greg just celebrated his 40th birthday. He has accumulated $76000 in his 401(k) and his wife has accumulated $95000 in her business. If the normal return to investors is 7.25%, how much money will they have on greg’s 60th birthday?
4. According to the present value calculation: a firm needs to have $150000 in 7 years to replace a piece of stamping equipment. If the normal return to investors in 6.5% and remains constant over the holding period how much of a lump sum investment does the firm need today.
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