Which of the Following Values Would Be Included in U

question 139

Multiple Choice

Which of the following values would be included in U.S.GDP for 2006?

• A) the rent that John,an American citizen,would have paid on his home in New York in 2006 had he not owned that home
• B) the rent that Sarah,an American citizen,paid on her apartment in San Francisco in 2006
• C) the value of the legal services provided by Carlos,an attorney and a Mexican citizen,who lived in Houston and practiced law there in 2006
• D) All of the above would be included in U.S.GDP for 2006.

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Definitions:

Shareholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities.

Liquid Asset

An asset that can be quickly converted into cash with minimal impact to its value.

Liquid Assets

Assets that can be easily converted into cash with little impact on their value.

Retained Earnings

The portion of net income that is not distributed to shareholders and is instead reinvested in the company.