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Which of the Following Equations Will Always Represent GDP in an Open

question 71

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Which of the following equations will always represent GDP in an open economy?


Definitions:

Investment Turnover

A financial ratio comparing the sales revenue a company generates to its current investment in assets, indicating efficiency in using investments to produce sales.

Cost Of Capital

The rate of return that a company must earn on its investment projects to maintain its market value and satisfy its investors.

Return On Investment

A financial metric used to evaluate the profitability of an investment, calculated as the return divided by the cost of the investment.

Residual Income

The income that remains after all costs and expenses, including the cost of capital, have been subtracted from net income.

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