Which amount is not included in gross domestic product?
A) Payments to a physician for treatment of a respiratory condition caused by air pollution
B) The purchase price of a used car bought from a friend
C) Wages of government employees
D) Wages of people who clean up toxic chemical spills
E) Wages of people who sell used cars
B
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Which of the following leads to a decrease in real GDP?
A) an increase in interest rates B) an increase in government spending C) an increase in the inflation rate in other countries, relative to the inflation in the United States D) Households have increasingly optimistic expectations about future income.
Refer to Current and Future Consumption. This consumer can lend and borrow at an interest rate of
The following questions refer to the accompanying diagram, which shows a consumer's choice between current and future consumption.
a. 8%.
b. 25%.
c. 64%.
d. 100%.
Rent control may lead to lower rents for those who find housing, but the quality of the housing may also be lower
a. True b. False Indicate whether the statement is true or false
The banking system currently holds $20 billion in required reserves and zero excess reserves. The Fed lowers the required reserve ratio from 15 percent to 12.5 percent. Assuming that there are no cash leakages, the resulting change in checkable deposits (or the money supply) is approximately
A) $2.7 billion. B) $1.5 billion. C) $2.0 billion. D) $12.5 billion. E) $26.6 billion.