The National Spending Approach to Calculating GDP States That GDP

question 87

Multiple Choice

The national spending approach to calculating GDP states that GDP is equal to:

• A) consumption + investment + government spending + net exports.
• B) wages + rent + interest + profit.
• C) wages + profit.
• D) consumption + investment + government spending + net exports - imports.

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Definitions:

Diversified Portfolios

Diversified portfolios comprise a mix of investments across various asset classes, aiming to reduce risk by not overly concentrating assets in one area.

Investment Performance

An assessment of how an investment has done over a specific period, often compared to a benchmark or standard.

Financial Intermediaries

Institutions that act as middlemen between savers and borrowers, facilitating the flow of funds in the financial system.

Diversify Their Portfolios

The strategy of spreading investments among various financial instruments, industries, and other categories to minimize risk.