To Get a Complete Measure of the Total Spending on U.S.-Produced

question 104

Multiple Choice

To get a complete measure of the total spending on U.S.-produced final goods and services, one must adjust aggregate demand by

• A)adding imports and subtracting exports.
• B)adding imports that are purchased by U.S.consumers.
• C)adding exports and subtracting imports.
• D)subtracting exports sold to foreigners.

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Definitions:

Semiannually

Occurring twice a year, typically every six months.

Call Price

The price at which a bond or other security can be repurchased by the issuer before its maturity date, usually at a premium to the face value.

Nominal Yield To Maturity

The return an investor expects to earn if a bond is held until its maturity date, without adjusting for inflation.

Semiannual Coupon

A semiannual coupon refers to the interest payment made to bondholders twice a year.