If You Buy Stocks and Bonds, the Dollar Value of Those

question 375

Multiple Choice

If you buy stocks and bonds, the dollar value of those stocks and bonds is

• A) included in Gross Domestic Product (GDP) under investment.
• B) included in Gross Domestic Product (GDP) under consumer expenditures.
• C) not included in calculating Gross Domestic Product (GDP) for they merely represent a transfer of ownership.
• D) included in Gross Domestic Product (GDP) if the stocks and bonds were issued by business firms but not if they were issued by governments.

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Definitions:

Usury Law

Legislation that sets maximum interest rates that can be charged on loans, designed to protect consumers from excessively high rates.

Interest Rate

The Interest Rate is the percentage at which interest is paid by borrowers for the use of money they borrow from a lender, commonly expressed as an annual percentage.

Aristotle

An ancient Greek philosopher and polymath who made significant contributions to numerous fields of study, including metaphysics, ethics, politics, and natural science.

Usury

Charging an excessively high or illegal rate of interest on borrowed money.