The purchase and sale of financial instruments is not included in calculations of investment spending because ________
A) not all of these transactions are reported to the federal government
B) both foreign and domestic economic agents can engage in the described transactions, but only U.S. economic agents can engage in investment
C) they do not necessarily lead to a change in the amount of output produced in the United States
D) they are already including in consumption spending
C
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A country will realize no gains from trade if
A) pre-trade and free-trade relative prices are identical. B) all countries employ the same technology. C) it does not have an absolute advantage in at least one good. D) its wage exceeds the world average. E) pre-trade and free-trade relative prices are not identical.
Other things remaining the same, if a nation's real GDP rises, the demand to hold money:
a. Falls. b. Rises. c. Does not change.
The consumer price index was 225 in 2006 and 236 in 2007. The nominal interest rate during this period was 6.5 percent. What was the real interest rate during this period?
a. 1.6 percent b. 4.9 percent c. 6.82 percent d. 11.4 percent
To derive the demand curve from the indifference map
A) vary the price of one good while holding the price of the other good and income constant. B) vary the prices of both goods while holding income constant. C) vary the price of one good and income while holding the price of the other good constant. D) vary income while holding the prices constant.