Transfer payments are
a. included in GDP because they represent income to individuals.
b. included in GDP because they eventually will be spent on consumption.
c. not included in GDP because they are not payments for currently produced goods or services.
d. not included in GDP because taxes will have to be raised to pay for them.
c
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Which of the following is NOT an advantage of a futures contract over a forward contract?
A) reduced counterparty risk B) increased flexibility C) lower information cost D) increased liquidity
You observe people going to the bank more frequently. Other things the same, this could result from
a. an increase in inflation which increases money demand. b. an increase in inflation which reduces money demand. c. a decrease in inflation which increases money demand. d. a decrease in inflation which reduces money demand.
Banks use ______ to make loans to borrowers.
a. primary reserves b. secondary reserves c. excess reserves d. reserve requirements
The monopolist's marginal revenue curve
A) doesn't exist. B) lies below the demand curve. C) is identical to the demand curve. D) lies above the demand curve.