To calculate GDP when using the income approach, you must add indirect business taxes and depreciation
Indicate whether the statement is true or false
TRUE
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When the Fed makes higher interest payments on bank reserves, banks will hold ________ reserves which will ________ the money supply
A) less; increase B) less; decrease C) more; increase D) more; decrease
The speculative attack on the British pound in 1967 succeeded because
A) the pound was seriously undervalued relative to the dollar. B) Britain decided to drop out of the Bretton Woods system. C) British exports greatly exceeded British imports, causing a large inflow of gold. D) the Bank of England lacked the international reserves to defend the existing exchange rate indefinitely.
Explain why a real exchange rate that does not equal one implies purchasing power parity does not hold.
What will be an ideal response?
When the economy is on the flat part of the AS curve, there is very little crowding out of planned investment.
Answer the following statement true (T) or false (F)