By How Much Does the Current GDP Rise in the Following

question 96

Multiple Choice

By how much does the current GDP rise in the following scenario? A real estate agent sells a house for $250,000 that the previous owners had purchased 10 years earlier for $90,000. The real estate agent earns a commission of $10,000.

• A) $160,000
• B) $250,000
• C) $10,000
• D) $90,000
• E) $260,000

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Definitions:

Net Cash Flows

The amount of cash that is generated or lost by a business in a given time period, calculated as cash inflows minus cash outflows.

Rate of Return

The returns or deficits generated by an investment over a certain span, represented as a percentage of the initial financial commitment.

Annual Dividend

The total dividend payment a company makes to its shareholders in a year, often expressed on a per share basis.

Investor's Return

The amount of profit or loss an investor realizes on an investment, reflecting the overall performance and earnings from the investment.