The Expenditure Approach to Measuring GDP Is Based on Summing

question 17

Multiple Choice

The expenditure approach to measuring GDP is based on summing

• A)wages,interest,rent,and profit.
• B)each industry's production.
• C)the total values of final goods,intermediate goods and services,used goods,and financial assets.
• D)consumption expenditure,investment,government expenditure on goods and services,and net exports of goods and services.
• E)consumption expenditure,investment,government expenditure on goods and services,and net exports of goods and services minus wages,interest,rent,and profit.

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Definitions:

Interest Sensitivity

The degree to which the price of a financial asset responds to changes in interest rates.

Coupon

In finance, a coupon refers to the annual interest payment made to bondholders, expressed as a percentage of the bond’s face value.

Callable

A bond or other financial security feature that allows the issuer to buy back the security before its maturity date.

Value Weighted Average

A method of calculating an average where each data point is weighted according to its value, commonly used in financial indexes to represent market trends.