GDP Does Not Include Which of the Following Activities

question 74

Multiple Choice

GDP does not include which of the following activities?

• A) Businesses installing anti-pollution equipment
• B) Households spending to enhance security of their neighborhoods
• C) Couples remodeling their own homes
• D) Families eating out in restaurants

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Definitions:

Default Rates

The percentage of borrowers who fail to repay their loans according to the terms of their agreements.

Foreclosure Rates

The percentage of properties undergoing the process of legal repossession by lenders due to borrowers' failure to make mortgage payments.

Lending Standards

Regulations and criteria set by financial institutions to determine the qualification of borrowers for loans.

Alt-A Loans

Loans extended with little documentation or verification of the borrowers’ income, employment, and other indicators of their ability to repay. Because of this poor documentation, these loans are risky.