The Dollar Value of Stocks and Bonds Traded in a Given

question 7

Multiple Choice

The dollar value of stocks and bonds traded in a given year:

• A)​is included in the calculation of GDP.
• B)​have no influence on GDP.
• C)​is included in the calculation of private investment.
• D)​is not included in GDP, but the broker commissions involved are included in GDP.

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Definitions:

Budget Deficit

A budget deficit occurs when a government's expenditures exceed its revenues during a specific period, leading to the need for borrowing or using saved reserves.

Loanable Funds

The market where savers supply funds to borrowers, influencing interest rates and investment activities.

Crowding Out

A situation in economics where increased public sector spending reduces or eliminates private sector spending.

Budget Deficit

A budget deficit occurs when a government's expenditures exceed its revenues within a specified period, leading to a need for borrowing to finance the shortfall.