As nominal Gross Domestic Product (GDP) rises, people will wish to
A) hold less money for transactions.
B) hold more money for transactions.
C) spend less.
D) invest only in stocks.
B
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The BRIC nations have one quarter of the world's GDP and more than 40 percent of its population
Indicate whether the statement is true or false
Assume that the central bank lowers the discount to increase the nation's monetary base. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the GDP Price Index and the nominal value of the domestic currency in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium
a. The GDP Price Index rises and nominal value of the domestic currency remains the same. b. The GDP Price Index falls and nominal value of the domestic currency remains the same. c. The GDP Price Index and nominal value of the domestic currency remain the same. d. The GDP Price Index rises and nominal value of the domestic currency rises. e. There is not enough information to determine what happens to these two macroeconomic variables.
A chain-weighted index:
A. is used to understate the rate of inflation. B. uses neighboring years' data to calculate changes in nominal GDP. C. calculates changes in prices by using an average of base years from neighboring years to obtain a more accurate measure of real GDP growth. D. is a useful tool for determining which fence to purchase.
A tax increase _________ supply.
Fill in the blank(s) with the appropriate word(s).