Which of the Following Is NOT Included in the Income

question 352

Multiple Choice

Which of the following is NOT included in the income approach to measuring GDP?

• A) net exports
• B) corporate profits
• C) compensation of employees
• D) net interest

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Definitions:

Periodic Interest Payments

Regular payments made to a lender by a borrower, covering the interest incurred on the borrowed funds.

Installment Note

A debt that requires regular payments, or installments, of principal and interest until it is paid off.

Present Value

The present value of a future amount of money or series of cash flows, discounted at a certain rate of return.

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as part of retirement strategy.