An economy's income is the same as its expenditure because every transaction has a buyer and a seller
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to the scenario above. What is the future value of Wendy's deposit after one year?
A) $2,110 B) $2,120 C) $2,360 D) $2,400
When people smoke cigarettes, their friends and family members may become sick. This affects GDP by
A. reducing GDP by the amount of medical care needed. B. reducing GDP by the cost of the cigarettes purchased. C. increasing GDP by the cost of the medical care and the cost of the cigarettes purchased. D. decreasing GDP by the cost of the medical care and increasing GDP by the cost of the cigarettes purchased.
Which of the following is closest to the future value of a $100 deposit earning 5 percent interest annually after 5 years?
A. $1,268 B. $128 C. $105 D. $125
The appropriate monetary policy in the event of a recessionary gap would be to
A. engage in an open market purchase of U.S. government securities. B. raise the required reserve ratio. C. increase the difference between the federal funds rate and the required reserve ratio. D. increase the difference between the discount rate and the federal funds rate.