Gross Private Domestic Investment Is a Component of Which Approach

question 275

Multiple Choice

Gross private domestic investment is a component of which approach to measuring GDP?

• A) incomes approach
• B) expenditure approach
• C) linking approach
• D) output approach

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Definitions:

Compounded Monthly

Interest calculation method where interest earned is added to the principal sum each month, increasing the total amount on which future interest is computed.

Time Value

A concept that money available at the present time is worth more than the identical sum in the future due to its potential earning capacity.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.

Compound Annual

This term, when incomplete, typically refers to the compound annual growth rate (CAGR), which is a measure of the mean annual growth rate of an investment over a specified time period longer than one year.