Suppose Nominal National Income in Some Country Fell from $100

question 79

Multiple Choice

Suppose nominal national income in some country fell from $100 billion to $95 billion during the year.Over the same period,inflation was 5%.In this case,the real national income in this country

• A)fell by 10%.
• B)fell by 5%.
• C)was unaffected.
• D)rose by 5%.
• E)rose by 10%.

Understand the concept of opportunity cost in decision making.

Differentiate between different types of costs (fixed, variable, relevant, sunk) and their relevance to decision-making.

Understand the concepts and mechanics of interest rate swaps as tools for managing financial risk.

Recognize different derivative instruments and their basic usage in financial markets.

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Definitions:

Importance Gap

The discrepancy between the expected importance of an attribute or factor and its perceived performance, usually in the context of service or product evaluation.

Modern Technology

Contemporary tools, devices, and techniques used to facilitate tasks and solve problems in various domains, including communication, transportation, and healthcare.

Daily Basis

A frequency or routine in which activities or tasks are conducted every day.

Winter Olympics

A multi-sport event held every four years, featuring winter sports competitions where athletes from various countries participate.