Dissatisfaction with Public School Education Has Led Many Parents to Try

question 5

Multiple Choice

Dissatisfaction with public school education has led many parents to try home schooling for their children.If parents reduce their work from a full-time to a part-time load in order to spend time teaching their children at home, how will this affect GDP?

• A)GDP will stay the same.
• B)Real GDP will increase and nominal GDP will decrease.
• C)Both real and nominal GDP will increase.
• D)GDP will decrease.

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Definitions:

Intrinsic Value

The actual value of a company or an asset based on underlying perception of its true value including all aspects of the business.

November 45 Call

A call option that gives the holder the right to buy a particular stock at a price of $45 per share, expiring in November.

Pure Discount Bond

A type of bond that is issued at a discount to its nominal value and pays no interest, but is redeemed at its face value at maturity.

Risk-Free Rate

The theoretical return on an investment with no risk of financial loss, typically associated with government bonds.