contestada

which would cause the gross domestic product to go up?
A.decrease in investments
B.increase in consumption
C.decrease in taxes
D.increase in imports

Respuesta :

The answer is B. Increase in consumption
Gross domestic products refers to the total value of goods and services that produced by the country within the period of one year.
When consumption increased, producers will be encouraged to improve their total production in order to increase the profit they get from the market.
tifanihayyu

B. increase in consumption is caused the gross domestic product to go up

Further explanation

Gross domestic products is a monetary measure of the market value of all the final goods, and services that produced in a specific time period and it often held annually.

This approach to calculate GDP can using the following formula:

[tex]GDP = C + G + I + NX[/tex], or (consumption + government spending + investment + net exports). All these activities contribute to the GDP of a country.

While the gross domestic product go up, the consumption, government spending, investment, net exports, all will be increased.

The interest rate (i) is the price of money and tends to follow the price level. As the interest rate (i) decreases, a given amount of borrowed funds buys a greater quantity of real GDP. An increasing GDP means that the economy is growing. Businesses are producing and selling more products or services. This condition (an increasing GDP) can provide a stable economic system and keep up with population growth.

Learn more

  1. Learn more about  the gross domestic product https://brainly.com/question/2638595
  2. Learn more about investments https://brainly.com/question/11687921
  3. Learn more about consumption https://brainly.com/question/6572692

Answer details

Grade:  9

Subject:  History

Chapter: The gross domestic product

Keywords:   the gross domestic product, investments, taxes, imports, product