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The Relationship Between GNI and GDP Is

Question 56

Multiple Choice

The relationship between GNI and GDP is:


A) GNI - GDP = factor income receipts from foreign sources - payments of income to foreign factors (by domestic firms) .
B) GDP is equal to GNI within the nation.
C) GDP is always less than GNI because of domestic transfer payments.
D) GNI includes transfers and gifts from the rest of the world; GDP does not.

Correct Answer:

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