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Firlakuza [10]
2 years ago
13

Calculate the GDP of Dinoland using the expenditures approach given the following data: personal consumption expenditures = $10

billion; gross private domestic investment = $5 billion; government spending = $3 billion; exports = $2 billion, imports = $1 billion.
a) $12 billion
b) $19 billion
c) $18 billion
d) $17 billion
Business
1 answer:
harina [27]2 years ago
7 0

Answer: b) $19 billion

Explanation:

GDP = Consumption + Investment + Government Spending + (Exports - Imports)

GDP = $10 + $5 + $3 + ($2-$1) = $19 billion

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6 0
1 year ago
Castelda company issues zero coupon bonds which mature in 30 years. These bonds can be bought for $999.38 and then pay no annual
professor190 [17]

Answer:

16.59%

Explanation:

We are given the present value of the bonds, their future value and the time, we need to calculate the rate:

FV = PV (1 + rate)ⁿ

  • FV = 100,000
  • PV = 999.38
  • n = 30

100,000 = 999.38 (1 + rate)³⁰

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8 0
2 years ago
The quantity theory of money is a theory of how A) the money supply is determined. B) interest rates are determined. C) the nomi
meriva

Answer:

C) the nominal value of aggregate income is determined

Explanation:

The quantity theory of money states that nominal aggregate income is determined by money supply. It is assumed that money velocity is constant in the short run and so would not impact nominal aggregate income.

The quantity theory of money is obtained from the equation of exchange which is:

(Money supply × velocity ) = (price × agregrate output)

Dividing both sides by velocity gives,

Money supply = (1/velocity) × ( price × agregrate output)

It is assumed velocity is constant, therefore,

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I hope my answer helps.

All the best

5 0
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