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Consider GDP Calculated According to the Expenditures Approach

question 26

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Consider GDP calculated according to the expenditures approach.Which of the following components of GDP would need to decrease for GDP to increase?


Definitions:

Contract Rate

The agreed-upon rate specified in a contract for performing services or supplying goods.

Bond Indenture

A contract that spells out the provisions of the contract between the corporation and bondholder.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money, or the amount a lender charges for the borrowing of money.

Contract Rate

The agreed-upon interest rate specified in a loan or bond agreement.

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