The farmer pays 15 cents for wheat seeds. When the wheat is grown and harvested, the farmer sells it to the miller for 30 cents, who makes flour and sells the flour to the baker for 60 cents. The baker makes bread and sells it to the grocer for 90 cents, and the grocer sells it to a family for $1.55. The contribution to GDP is
A. $1.95.
B. 45 cents.
C. $1.55.
D. $3.20.
Answer: C
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Refer to Figure 18-1. Italians cut back on smoking and cut their demand for American cigarettes in half. Assuming all else remains constant, this would be represented as a movement from
A) B to A. B) A to D. C) D to C. D) B to C.
The number of people that are fired in a month is
A) a stock. B) a flow. C) both a stock and a flow. D) neither a stock nor a flow.
A(n) ________ in U.S. prices will cause an increase in the demand for U.S. dollars and a(n) ________ in the (per dollar) exchange rate.
A. increase; increase B. increase; decrease C. decrease; increase D. decrease; decrease
A decrease in the foreign interest rate relative to the domestic interest rate ________ the exchange rate value of a foreign currency in the short run.
A. causes fluctuations in B. does not affect C. lowers D. raises