If Nominal GDP Is $5 Trillion and Real GDP Is

question 201

Multiple Choice

If nominal GDP is $5 trillion and real GDP is $4 trillion,the GDP deflator is

• A)12.5.
• B)80.
• C)125.
• D)800.

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Definitions:

Subprime Mortgage

Mortgage for a borrower with a not-so-good credit rating.

Credit Rating

An assessment of the creditworthiness of a borrower in general terms or with respect to a particular debt or financial obligation.

Prime Rate

The interest rate that commercial banks charge their most creditworthy customers, typically used as a benchmark for many other loans and credit products.

Bank Deposits

Funds that customers place into a bank account, which can range from savings and checking accounts to fixed deposits.