The Carters' Oldest Son Attends Big State University

question 219

Multiple Choice

The Carters' oldest son attends Big State University. He and his parents pay all his fees and tuition. These payments count in GDP as

• A)investment.
• B)government spending.
• C)consumption of services.
• D)consumption of durable goods.

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Definitions:

Growth In Dividends

The pace at which dividend distributions to shareholders by a company grow over a period.

Required Rate Of Return

This is the minimum return that investors expect or demand for an investment to be considered worthwhile.

Market Price

The contemporary market price for acquiring or disposing of an asset or service.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, factoring in the time value of money.