Which of the Following Statements Is True

question 151

Multiple Choice

Which of the following statements is true?

• A) During periods of inflation, nominal GDP increases more rapidly than does real GDP.
• B) Nominal values are expressed in constant dollars.
• C) Real values are expressed in current dollars.
• D) Increases in real GDP are evidence that the distribution of wealth is becoming more equal.

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Definitions:

Capital

Financial assets or the financial value of assets, such as funds held in deposit accounts, as well as the physical factors of production including machinery and buildings.

Character

In finance, character often refers to one of the "Three Cs" (character, capacity, collateral) used to assess a borrower's creditworthiness, focusing on their reputation for repaying debts.

Financial Reserves

Funds or assets that are set aside to meet future liabilities, contingencies, or unforeseen expenditures.

Capital

Resources made available for the use in the production of goods or services, often categorized into financial, human, or physical forms.