Transfer Payments Are

question 10

Multiple Choice

Transfer payments are

• A)included in GDP because they represent income to individuals.
• B)included in GDP because they eventually will be spent on consumption.
• C)not included in GDP because they are not payments for currently produced goods or services.
• D)not included in GDP because taxes will have to be raised to pay for them.

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Definitions:

Semi-Annually Compounded

Pertaining to the interest calculation method where the interest is compounded and added to the principal amount twice a year.

Compounded Annually

The process of earning interest on both the initial principal and the accumulated interest from previous periods on an annual basis.

Compounded Annually

The calculation of interest on the initial principal and the interest accumulated over the previous periods once a year.

Guaranteed Investment Certificate

A secure investment that guarantees to return the principal amount plus interest at a specified rate.