The Factor Income Approach Splits GDP into Consumption,investment,interest,and Rent

question 134

True/False

The factor income approach splits GDP into consumption,investment,interest,and rent.

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Definitions:

Replacement

The act of substituting a new asset or item for an old or damaged one.

Internal Rate

Often referring to the internal rate of return (IRR), which is the rate of growth a project is expected to generate, calculated as the rate of discount that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Net Present Value

A financial indicator that determines the variance between the current value of incoming and outgoing cash flows during a specific timeframe.

Initial Investment

The sum of funds utilized to initiate a project, investment, or business endeavor.