When we calculate GDP, imports are
A. Subtracted from exports and included in gross investment.
B. Subtracted from total spending because they are part of another country's GDP.
C. Added to exports because both represent purchases of final goods.
D. Subtracted from exports to obtain gross exports.
Answer: B
You might also like to view...
Suppose you own some German government bonds that pay you interest every year. This interest is entered into which of the balance of payments accounts?
A) trade account B) interest account C) current account D) capital and financial account E) official settlements account
If the price of muffins, a normal good you enjoy, rises, then
A) both the income and substitution effects lead you to buy fewer muffins. B) the substitution effect which causes you to decrease your muffin consumption outweighs the income effect which causes you to increase your muffin consumption, resulting in fewer muffins purchased. C) the income effect which causes you to decrease your muffin consumption outweighs the substitution effect which causes you to increase your muffin consumption, resulting in fewer muffins purchased. D) the income and substitution effects offset each other but the price effect leads you to buy fewer muffins.
Explain how compensation plans like piece rate payment, capitation fees, and hourly payment options resolve the principal/agent problem faced by employers
Which of the following would shift the investment demand curve rightward?
a. Lower expected rates of return on investment in capital goods b. Greater inventories of capital goods c. Higher business taxes on capital goods d. A more rapid rate of technological progress