The unreported or illegal production of goods and services in the economy that is not counted in GDP is called
a. money laundering
b. the underground economy
c. net personal disposable income
d. indirect national income
e. unreported capital consumption
B
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Everything else remaining unchanged, what will happen if the Fed sells government bonds in the open market and borrowed reserves is zero?
A) It will cause both the equilibrium federal funds rate and equilibrium quantity of reserves to fall. B) It will cause the equilibrium federal funds rate to fall, but no change in the equilibrium quantity of reserves. C) It will cause the equilibrium federal funds rate to rise, but no change in the equilibrium quantity of reserves. D) It will cause the equilibrium federal funds rate to rise and the equilibrium quantity of reserves to fall.
When tastes are risk loving, a person will always choose a gamble that is riskier over one that is less risky.
Answer the following statement true (T) or false (F)
Ceteris paribus, a decrease in the government's budget deficit will increase domestic investment and net foreign investment
Indicate whether the statement is true or false
A shock that could trigger an expansion is a
a. large increase in oil prices b. financial crisis c. sudden cutback in military spending d. large decrease in oil prices e. sudden increase in the interest rate