Questions: 8 Multiple Choice 4 points Which of these is represented by the Gross Domestic Product (GDP)? the amount of reserve that banks are required to hold the rate of interest charged on reserves lent to banks the total value of goods and services produced within a nation the change in the average price of consumer goods and services

The answer is the third one: the total value of goods and services produced within a nation.

Explanation for each option:

• The amount of reserve that banks are required to hold: This refers to the reserve requirement, which is a regulation set by central banks that determines the minimum amount of reserves a bank must hold against deposits. It is not related to GDP.
• The rate of interest charged on reserves lent to banks: This refers to the discount rate or the federal funds rate, which is the interest rate at which banks lend reserves to each other overnight. It is not related to GDP.
• The total value of goods and services produced within a nation: This is the correct definition of Gross Domestic Product (GDP). GDP measures the monetary value of all finished goods and services produced within a country's borders in a specific time period.
• The change in the average price of consumer goods and services: This refers to inflation, which is measured by the Consumer Price Index (CPI) or other similar indices. It is not related to GDP.

Summary: Gross Domestic Product (GDP) represents the total value of goods and services produced within a nation.