A Minnesota farmer buys a new tractor made in Iowa by a German company. As a result,
a. U.S. investment and GDP increase, but German GDP is unaffected.
b. U.S. investment and German GDP increase, but U.S. GDP is unaffected.
c. U.S. investment, U.S. GDP, and German GDP are unaffected, because tractors are intermediate goods.
d. U.S. investment, U.S. GDP, and German GDP all increase.
A
You might also like to view...
The basic truth that underlies the study of economics is the fact that we all face
A. risk. B. scarcity. C. death. D. taxes.
If the price index last year was 1.0 and today it is 1.4, what is the inflation rate over this period?
A) -4% B) 1.4% C) 4% D) 40%
In the real business cycle model, business cycles are
a. efficient and do not represent lost output. b. driven by technology shocks. c. occur when markets clear. d. all of the above. e. None of the above
Which of the following compose the reserves of a commercial bank?
a. checkable deposits and time deposits b. vault cash and deposits of the bank with the Federal Reserve c. U.S. securities and stock equity d. cash and U.S. securities