Use the Following Terms for This Question: C = Consumption

question 10

Multiple Choice

Use the following terms for this question: C = consumption
I = capital investment spending
G = government spending
X = exports of goods and services
M = imports of goods and services
BOP = balance of payments
GDP = gross domestic product
NPV = net present value
INF = inflation
R = real rate of return
The static equation for the nations GDP is:

• A) GDP = C + I + G + (X + M ) × INF
• B) GDP = C + I + G + X + M
• C) GDP = C + I + G + X - M
• D) GDP = C + I + X - M + R

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Definitions:

Profits

The financial gain that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Nonprofit Organizations

Entities that operate for purposes other than generating profit, focusing on charitable, educational, or public service objectives.