All of the Following Transactions That Took Place in 2009

question 36

Multiple Choice

All of the following transactions that took place in 2009 would be included in GDP for 2009 except the purchase of a:

• A) book printed in 2009, entitled The Year 3000.
• B) 2001 Jeep Cherokee.
• C) year 2010 calendar printed in 2009.
• D) ticket to see the movie 2001.

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Definitions:

Risk Premium

The additional yield beyond the risk-free rate that investors demand as a reward for taking on the risk associated with an investment.

Risk-Free Asset

An investment with a guaranteed return and no risk of financial loss.

Standard Deviation

Standard deviation measures the amount of variation or dispersion from the average in a set of data points, indicating how spread out the numbers are.

Real Rate of Interest

The interest rate that has been adjusted to remove the effects of inflation; reflects the true cost of borrowing.