Which of the Following Would Not Be Included in the Measurement

question 9

Multiple Choice

Which of the following would not be included in the measurement of GDP?

• A) You hire someone to fix a leaky faucet.
• B) You do the (unpaid) housework.
• C) The value of housing services, if you own your own home.
• D) An unplanned drop in business inventories.

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Definitions:

Duration

A measure of the sensitivity of a bond's or fixed income portfolio's price to changes in interest rates, expressed in years.

Maturity

Is the expiration date of a financial instrument, at which point the principal (or final interest payment) is repaid to the investors.

Coupon Rate

The interest rate per year on a bond, expressed as a fraction of its face value.

Par-Value

The face value of a bond or stock, representing the amount that the issuer agrees to repay at maturity or the nominal value of a share, respectively.