Which of the Following Would Be Included in the Calculation

question 58

Multiple Choice

Which of the following would be included in the calculation of gross domestic product (GDP) ?

• A) the value of a used automobile purchased by Jim
• B) the sale price of a new house purchased by Joe
• C) the receipt of $100 in food stamps by Sandy
• D) the $200 that Kurt spends on the purchase of bonds
• E) the amount of money that Laurie receives as unemployment benefit after losing her job

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Definitions:

Interest Rate

The cost of borrowing money, expressed as a percentage of the total amount loaned, paid by borrowers to lenders.

Present Value

The contemporary valuation of an anticipated sum of money or cash flow sequence, based on a given return rate.

Interest Rate

The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time.