If you buy a five-year-old TV from a friend, the amount you paid for the TV is
A) always added to consumption expenditures but not investment.
B) always added to investment but not consumption.
C) not included in this year's GDP.
D) added to investment if the TV is expected to last more than 5 additional years and added to consumption if the TV is expected to last less than 5 additional years.
E) included in this year's GDP only if the TV set was manufactured in the United States.
C
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If the U.S. government increased its holdings of British pounds, definitely
A) the capital and financial account would increase. B) the capital and financial account would decrease. C) there would be an increase in U.S. official reserves. D) there would be a decrease in U.S. official reserves.
How do economic growth rates affect a nation's standard of living?
What will be an ideal response?
Unions often face a tradeoff between higher wage rates and employment
Indicate whether the statement is true or false
To the investor, stocks are riskier than bonds because
a. interest rates fluctuate more than stock prices. b. dividends depend on profits. c. speculators manipulate stocks but not bonds. d. dividends are taxed twice.