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Assume that MPS is 0.4.If spending increases by $8 billion, then real GDP will increase by
Put Contract
A financial agreement that grants the holder permission, but not the requirement, to sell a certain amount of an underlying asset at a predetermined price before a certain deadline.
Call Premium
The additional cost over the par value that an investor must pay to purchase a callable security before its maturity date.
Strike Price
The predetermined price at which the holder of an option can buy (call) or sell (put) the underlying asset, until the option expires.
Call Contract
A financial agreement giving the buyer the right, but not the obligation, to buy a stock, bond, commodity, or other asset at a specific price within a specific time period.
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