An American-owned McDonald's opens in Russia. How would the net revenue earned by this restaurant affect the GDP and GNP of the United States?
a. It would increase GNP and GDP.
b. It would increase GNP and leave GDP unchanged.
c. It would increase GDP and leave GNP unchanged.
d. It would leave both GDP and GNP unchanged.
B
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The GAP ratio is a measure of __________ risk
A) credit B) leverage C) interest rate D) liquidity
Bank runs are only a concern under a fractional-reserve banking system
a. True b. False Indicate whether the statement is true or false
Which of the following will happen if the supply of loans increases?
A. The interest rate will rise, and the quantity of money borrowed will decline. B. The interest rate will fall, and the quantity of money borrowed will increase. C. The interest rate will fall, and the quantity of money borrowed will decline. D. The interest rate will rise, and the quantity of money borrowed will increase.
Suppose a country’s workers can produce 4 watches per hour or 16 rings per hour. If there is no trade
A. the opportunity cost of 1 watch is 4 rings. B. the opportunity cost of 1 watch is 1/4th of a ring. C. the opportunity cost of 1 watch is 5 rings. D. the opportunity cost of 1 watch is 1/5th of a ring.