Answer: $156
Explanation:
The gross domestic product is referred to as the value of the final goods which a particular country produces for that economy.
Based on the information given, the GDP will be calculated as:
GDP = C + I + G + X - M
where C = consumption = $120
I = Investment = $25
G = government purchases = $15
X = exports = $8
M = imports = $12
GDP = C + I + G + X - IM
GDP = $120 + $25 + $15 + $8 - $12
GDP = $156
Answer:
False
Explanation:
The statement is false, as a decrease in the overall interest rate increases the overall worth of a bond which pays fixed interest rate payments. The public will demand more bonds with fixed interest rate payments, and the demand for bonds with flexible interest payments will decrease likewise. This is the main reason why the face value of bonds with fixed interest rate payments is usually higher than flexible bonds because they are less risky.
Answer:
Perquisites.
Explanation:
Perquisite is defined as non wage compensation that an employee benefits in addition to normal salary.
When an employee exchanges his salary for some other form of compensation it is called salary packaging.
In this scenario the CEO enjoys benefits such as the use of a luxury summerhouse owned by the company for rest and relaxation with his family as well as a place to invite important clients before a lucrative business deal.
Also he has membership to an exclusive country club to its CEO.
When the Fed purchases bonds on the open market, it expands the amount of money available to the general public by exchanging the bonds for cash. In contrast, if the Fed sells bonds, it reduces the money supply because it takes money out of circulation in return for bonds.
<h3>What is money supply?</h3>
Lower interest rates are often a result of increased money supply, which leads to more investment and more money in consumers' hands, which in turn boosts consumption. In response, companies place larger orders for raw materials and boost output.
People like to hold more money while interest rates are falling than when they are rising, and vice versa. Another method for bringing the money supply and demand into balance is through price changes. When people have more nominal money than they need, they spend it more quickly, driving up prices.
When the Fed purchases bonds on the open market, it expands the amount of money available to the general public by exchanging the bonds for cash. In contrast, if the Fed sells bonds, it reduces the money supply because it takes money out of circulation in return for bonds.
To learn more about money supply refer to:
brainly.com/question/1456933
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