Government Spending Is Generally a Very Unstable Component of GDP

question 149

True/False

Government spending is generally a very unstable component of GDP.

---

Definitions:

Convertible Bonds

Debt securities issued by a corporation that can be converted into a predetermined number of common stock shares at the holder's option.

Earnings Before Taxes

The income of a company before taking into account the tax expense, used to assess profitability.

Credit Default Swap

A fiscal derivative or agreement enabling an investor to exchange or transfer their credit risk to another investor.

Recovery Value

The estimated amount that an asset can be sold for at the end of its useful life, or the value recovered from an investment or loan.