Scenario 26-3

question 68

Multiple Choice

Scenario 26-3.Assume the following information for an imaginary,open economy.
Consumption = $1,000;investment = $200;net exports = -$50;
taxes = $230;private saving = $225;and national saving = $150.
-Refer to Scenario 26-3.For this economy,GDP equals

• A)$1,480.
• B)$1,505.
• C)$1,460
• D)$1,455.

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Definitions:

Receivables

Payments due from clients to a business for the delivery of goods or services that have not yet been compensated.

Collateral

An asset or property that a borrower offers to a lender as security for a loan, which the lender can seize if the borrower fails to make required payments.

Installment Loan

A loan that is repaid over time with a set number of scheduled payments.

Stated Annual Rate

The interest rate of a financial product, such as a loan or savings account, as advertised before the effects of compounding and fees.