Gross Domestic Product Is Equal to the Sum of All

question 5

Multiple Choice

Gross domestic product is equal to the sum of all of the following EXCEPT:

• A)personal consumption expenditures
• B)net exports
• C)government expenditures
• D)all of the above are included

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Definitions:

Arbitrage Opportunity

The opportunity to buy an asset at a lower price in one market and sell it at a higher price in another, securing a risk-free profit.

Short Position

A trading strategy involving the sale of a security that is not owned by the seller, with the expectation that the price will decline, allowing it to be bought back at a lower price.

Long Position

A financial term describing the purchase of a security with the expectation that its value will rise over time.

Multifactor APT

A model in financial markets that describes how the returns of an asset can be determined by its exposure to multiple risk factors, as per the Arbitrage Pricing Theory.