Real National Income

question 51

Multiple Choice

Real national income

• A)changes by the same amount and in the same direction as does nominal national income.
• B)refers to national wealth but is not an indicator of current production.
• C)refers to national income with no adjustment for changes in prices.
• D)always equals nominal national income.
• E)changes only when the underlying quantities change.

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Definitions:

Credit Market

A financial market where borrowers can obtain funds from investors, encompassing all transactions involving lending and borrowing.

Legal Claim

A formal assertion of one's right, typically in court, to secure a remedy or enforcement by legal means.

Cash Flows

The total amount of money being transferred into and out of a business, particularly in terms of liquidity.

Prime Rate

The interest rate that banks charge their most credit-worthy customers, usually a basis for other interest rates.