Which of the Following Is Included in the Consumption Component

question 32

Multiple Choice

Which of the following is included in the consumption component of U.S.GDP?

• A)purchases of staplers,paper clips,and pens by U.S.business firms
• B)purchases of natural gas by U.S.households
• C)purchases of newly constructed homes by U.S.households
• D)All of the above are correct.

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Definitions:

Semiannual Interest

Interest that is calculated and paid twice a year, commonly found in bonds and loans.

Present Value

A financial concept that represents the current value of a future amount of money or stream of cash flows given a specified rate of return.

Compounded Annually

The process of calculating interest on the initial principal, which also includes all the accumulated interest from previous periods on a loan or deposit.

Amortization Schedule

A table detailing each periodic payment on a loan, showing the amount of principal and the amount of interest.