The static equation for a country’s GDP is

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
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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