Spending on Imports Should Get _________ GDP, and Spending on Exports

question 82

Multiple Choice

Spending on imports should get _________ GDP, and spending on exports should be __________.

• A) subtracted from; included
• B) included in; included as well
• C) subtracted from; subtracted as well
• D) included in; subtracted

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Definitions:

Risk-Averse

The characteristic of preferring to avoid risk, typically by choosing more certain outcomes over those with potentially higher but risky returns.

Positively Correlated Events

Situations or variables that move in the same direction, implying that as one increases, the other also increases.

Diversification

A risk management strategy that involves allocating investments among various financial instruments, industries, or other categories to minimize risk.

Expected Value

A calculated average of all possible values for a random variable, weighted by their probabilities of occurrence.