Table 23-4 the Table Below Reports Nominal and Real GDP for the for the U.S

question 24

Multiple Choice

Table 23-4
The table below reports nominal and real GDP for the U.S. from 1929 to 1932.
-Refer to Table 23-4. What are the GDP deflator and the inflation rate for 1931?

• A)9.16, -11.5
• B)9.16, -10.3
• C)1091.37, 10.3
• D)1091.37, 11.5

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Definitions:

Present Value

The worth as of today of a future money sum or cash flow series, taking into consideration a specific rate of return.

Present Values

This is a concept in finance that calculates the current worth of a future sum of money or stream of cash flows given a specified rate of return.

Discount Rate

This rate is applied in the framework of DCF analysis for the purpose of calculating the current value of foreseeable cash flows.

Compounded Annually

Compounded annually refers to the calculation and addition of interest to the principal sum of a loan or deposit once every year.