If Consumption Expenditures Are $500, Spending on Fixed Investment Is

question 206

Multiple Choice

If consumption expenditures are $500, spending on fixed investment is $100, imports are $40, exports are $75, the capital consumption allowance is $25, government spending is $50, and inventories have fallen by $5, then Gross Domestic Product (GDP) is

• A) $25 greater than NDP.
• B) $20 greater than NDP.
• C) $50 greater than NDP.
• D) the same as NDP.

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Definitions:

American Participation

The involvement of the United States in international or domestic events, ranging from wars to political movements.

Vietnam War

A prolonged conflict from the 1950s to the 1975 between North Vietnam (supported by its communist allies) and South Vietnam (supported by the United States and other anti-communist countries), resulting in significant political and social upheaval.

Détente

A period of improved relations and reduction in tensions between countries, especially notable between the United States and the Soviet Union during the Cold War.