An increase in nominal GDP
A) is absolute real economic growth.
B) is per capita real economic growth.
C) is both per capita and absolute real economic growth.
D) does not necessarily mean either absolute or per capita real economic growth.
D
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If credit cards were suddenly ruled illegal and were no longer used, the most likely effect would be a decrease in the
a. demand for money. b. level of cash balances. c. average checking account balance. d. velocity of circulation.
Eric brews beer for a hobby. He has noticed that whenever he brews an unusually bad batch of beer, his next batch is much better. One explanation for this is that Eric learns from his past mistakes. Another explanation is:
A. regression to the mean. B. loss aversion. C. status quo bias. D. the representative heuristic.
Investment, as a part of GDP, includes:
A. any goods that are bought by - firms who plan to use those purchases to produce other goods and services in the future, rather than consuming them. B. any item you buy that you are looking for a return on over time. C. consumption goods that are purchased by households. D. spending on productive inputs such as stocks, bonds, and other types of financial instruments.
In a world with few impediments to capital mobility, the domestic interest rate equals the sum of the foreign interest rate and the expected depreciation of the domestic currency, a situation known as the
A) interest parity condition. B) purchasing power parity condition. C) exchange rate parity condition. D) foreign asset parity condition.