The ________ approach is a method of calculating GDP by adding up all payments to owners of resources used to produce output during the year
a. expenditure
b. income
c. double counting
d. investment
b
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When Grayce deposits $4,000 cash in her checkable deposit at the Beach Bank and the Beach Bank's excess reserves increase by $3,600, the desired reserve ratio is
A) 5 percent. B) 90 percent. C) 10 percent. D) 15 percent. E) $400.
Suppose the United States is experiencing a balance of payments surplus. To prevent the exchange rate from appreciating, the U.S. Treasury must
A) sell dollars and buy foreign currency. B) sell both dollars and foreign currency. C) buy both dollars and foreign currency. D) sell foreign currency and buy dollars.
The following simple model is used to determine the annual savings of an individual on the basis of his annual income and education.
Savings = ?0 + 
0 Edu + ?1Inc + u
The variable ‘Edu' takes a value of 1 if the person is educated and the variable ‘Inc' measures the income of the individual.
?
Refer to the model above. The benchmark group in this model is _____.
A. the group of educated people B. the group of uneducated people C. the group of individuals with a high income D. the group of individuals with a low income
If the federal government ________ during the financial crisis of 2008-2009, the fall in overall stock prices would likely have been larger.
A. had not allowed the large financial institutions to declare bankruptcy B. had bailed out the large financial institutions C. had not bailed out the large financial institutions D. had allowed the sale of the large financial institutions to foreign investors