The Circular Flow Shows That GDP Measures I

question 167

Multiple Choice

The circular flow shows that GDP measures i. total income.
Ii. total expenditures.
Iii. price changes.

• A)i only
• B)ii only
• C)iii only
• D)i and ii
• E)i, ii, and iii

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Definitions:

Spot Rate

The existing market cost at which a specific asset is available for purchase or sale for instant delivery.

Forward Rate

The exchange rate specified in a forward exchange contract.

Premium

An amount paid for an insurance policy or an amount paid above the face value of a bond.

Cash Flow Hedge

A hedge of the exposure to the variability in cash flows that is attributable to a particular risk that is associated with all, or some component of, a recognized asset or liability or a highly probable forecast transaction and could affect profit or loss.