Which of the Following Would Increase GDP

question 275

Multiple Choice

Which of the following would increase GDP?

• A)buying a 10-year-old house
• B)purchasing 100 shares of McDonald's stock
• C)a $1,000 expenditure on roof repairs after a Florida hurricane
• D)a $1,000 contribution to the Red Cross to assist the victims of a Florida hurricane

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Definitions:

Conversion Ratios

A specific figure or ratio that determines how convertible securities, like convertible bonds, can be exchanged for other types of securities, typically the common stock of a company.

Maturities

The dates on which financial obligations or instruments are due to be paid back or expire.

Modified Duration

A measure that quantifies the sensitivity of the price of a bond or other debt instrument to changes in interest rates, indicating the percentage change in price for a parallel shift in yield curves.

Corporate Bond

A type of debt security issued by corporations to raise capital, promising to pay back the face value plus interest.