Use the Figure Below to Answer the Following Questions

question 101

Multiple Choice

Use the figure below to answer the following questions.

Figure 26.3.5
-Refer to Figure 26.3.5. Potential GDP is

• A)$13 trillion.
• B)$13.5 trillion.
• C)more than $13 trillion and less than $13.5 trillion.
• D)less than $13 trillion.
• E)100

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Definitions:

Forward Rate

The agreed-upon exchange rate for a currency transaction that will occur at a future date, used as a hedging instrument against currency fluctuations.

Average Rate

An indicative value representing the mean of several different rates or prices, commonly used in finance.

Exchange Rates

The value of one currency for the purpose of conversion to another.

Inventory Purchase

The acquisition of goods and materials a company intends to sell or use in the production process.