If GNP Is $625 Billion and Depreciation Is $125 Billion

question 18

Multiple Choice

If GNP is $625 billion and depreciation is $125 billion, then net national product is

• A) $5 billion.
• B) $500 billion.
• C) $700 billion.
• D) $750 billion.

---

Definitions:

Compounded Monthly

Involves calculating interest on the initial principal and the accumulated interest from previous months, applied monthly.

Monthly Payments

Regular payments made once a month as part of a financial agreement, such as a loan or mortgage.

Interest

The cost of borrowing money, typically expressed as a percentage of the amount borrowed.

Compounded Annually

Interest calculation method where the interest is calculated once a year and added to the principal sum, affecting the next year's interest calculation.