Which of the following describes the relationship between GDP and government spending?
a. Government spending = GDP + consumption + private investment - exports - imports
b. Government spending = GDP - consumption - private investment - exports - imports
c. Government spending = GDP - consumption - private investment + exports + imports
d. Government spending = GDP - consumption - private investment - exports + imports
e. Government spending = GDP + consumption - private investment + exports - imports
D
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The income elasticity of demand is
A) positive for a normal good. B) zero for an inferior good. C) less than one for an income elastic normal good. D) Only answers A and B are correct. E) Answers A, B, and C are correct.
Suppose that a bank begins with $500 million in deposits and $100 million in reserves and is just meeting its desired reserve ratio. Now suppose a decrease in the required reserve ratio lowers the desired reserve ratio to 10 percent
After the fall in the desired reserve ratio but before the bank makes any changes, the bank's excess reserves are A) 0. B) $400 million. C) $450 million. D) $50 million.
________ means people are more unhappy when they suffer losses than they are happy when they achieve gains
A) Loss fundamentals B) Loss aversion C) Loss leader D) Loss cycle
If a 5 percent increase in income leads to a 15 percent increase in the quantity demanded of a service, then the income elasticity of demand for that service equals 0.33
a. True b. False