Use the Following to Answer Questions

question 118

Multiple Choice

Use the following to answer questions .
Exhibit: Consumption and Real GDP
-(Exhibit: Consumption and Real GDP) If real GDP is $8 trillion, saving equals

• A) $4 trillion.
• B) $3 trillion.
• C) $2 trillion.
• D) $1 trillion.

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Definitions:

Invoice Price

The price that a retailer, dealer, or distributor pays to the manufacturer, excluding any additional fees or charges.

Coupon Rate

The coupon rate is the annual interest rate paid by bond issuers on the bond's face value.

Clean Price

The price of a bond net of accrued interest; this is the price that is typically quoted.

Coupon Bond

A type of bond that pays the holder periodic interest payments based on a predetermined rate (the "coupon rate") until it matures, at which point the principal (or face value) is repaid.