Table 19-11 -Refer to Table 19-11.Consider the Following Data on Nominal GDP

question 85

Multiple Choice

Table 19-11

-Refer to Table 19-11.Consider the following data on nominal GDP and real GDP (values are in billions of dollars) : The GDP deflator for 2011 equals

• A) 92.2.
• B) 102.6.
• C) 108.5.
• D) 109.1.

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Definitions:

Bond Discount Amortization

The process of gradually writing off the discount on a bond over the life of the bond, reflecting the increase in its value as it nears maturity.

Carrying Value

The net amount at which an asset is valued on the balance sheet, taking into account depreciation, amortization, and impairment costs.

Effective-Interest Method

A method of amortizing the discount or premium on bonds payable over the life of the bonds, providing a periodic interest expense that reflects a constant rate of interest.

Discount on Bonds Payable

The difference between the face value of a bond and its selling price when a bond is sold for less than its face value.