The static equation for a country’s GDP is
Chapter16: Country Risk Analysis
Section: Chapter Questions
Problem 17QA
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Use the following terms for this question:
C = Consumption.
I = Capital investment spending.
G = Government spending.
X = Exports of goods and services.
M = Imports of goods and services.
BOP = Balance of Payments.
GDP = Gross Domestic Product.
NPV = Net Present Value .
INF = Inflation.
R = Real rate of return .
The static equation for a country’s GDP is:
A. GDP = C + I + G + X – M - (R – INF).
B. GDP = C + I + G + X + M.
C. GDP = C + I + G + X – M.
D. GDP = C + I + X - M + R – INF.
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