Which of the Following Transactions Would Be Included in the Official

question 234

Multiple Choice

Which of the following transactions would be included in the official calculation of GDP?

• A)A student buys a used textbook at the bookstore.
• B)Firestone sells $2 million worth of tires to General Motors.
• C)You wash and wax your father's car as a favor to him.
• D)You buy a new iPod.
• E)You illegally download music off the Internet to put on your new iPod.

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Definitions:

Payment Plans

Agreements outlining how a borrower will pay back a loan or an installment purchase over a specified time period.

Amortized Mortgage

A loan where the principal is paid down over the life of the loan, typically through fixed monthly payments.

Nominal Interest Rate

The rate of interest before adjustments for inflation, reflecting the rate at which money can be borrowed or lent.

Monthly Payments

Regular payments made on a monthly basis towards settling a financial obligation, such as a loan or mortgage.