Which of the Following Will Lead to an Increase in the GDP

question 1

Multiple Choice

Which of the following will lead to an increase in the GDP of a country?

• A) An increase in imports
• B) An increase in expenditure on investment goods
• C) A fall in the expenditure on consumption
• D) A fall in the expenditure incurred by the government

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Definitions:

Capital Investment Proposals

Proposals for significant investments in long-term assets, often analyzed for their potential to generate future profits and cash flows.

Evaluating

The process of assessing or appraising the performance, value, or condition of an entity or component.

Capital Investment Analysis

The process of assessing the viability and potential return on investments in long-term assets.

Fixed Assets

Physical resources that are owned and used by a business and are permanent or have a long life; long-term or relatively permanent tangible assets such as equipment, machinery, buildings, and land that are used in normal business operations.