The Expenditure Approach to Measuring GDP Is Done by Using

question 58

Multiple Choice

The expenditure approach to measuring GDP is done by using data on only

• A)wages, rent, interest, and profit.
• B)consumption expenditure.
• C)consumption expenditure and investment.
• D)consumption expenditure, investment, government expenditure on goods and services, and net exports of goods and services.
• E)consumption expenditure, investment, and government expenditures.

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Definitions:

Expected Rate

The predicted interest rate or return for an investment over a specific period.

Diversification Effects

The reduction in risk achieved by investing in a variety of assets, thus minimizing the impact of poor performance from any single asset.

Portfolio A

A specific collection of financial assets such as stocks, bonds, cash equivalents, and their mutual funds, owned by an individual or an institutional investor.

Portfolio B

Portfolio B is not a specific term but could refer to a theoretical or actual portfolio of investments selected as a part of an investment strategy or for analysis.