Aneta has owned an Italian sports car for several years and now she wants to sell it. She paid $8,500 for it in 1993 and she has just sold it for $39,000 in 2015 . How is this sale included in the GDP for 2015?
a. $8,500 is included in 2015 GDP
b. $39,000 is included in 2015 GDP
c. The increase in value of $10,500 is included in 2015 GDP
d. It is not included in 2015 GDP
d
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The primary function of reserve requirements is to serve as
A) a source of bank liquidity. B) an instrument of monetary control. C) a means of reducing bank profits. D) a means of controlling the amount of currency in the banking system.
Which is not true of the interest rate?
A. It is the price at which funds can be rented. B. It is the price at which funds can be borrowed. C. It affects the marginal revenue product of capital. D. It does not affect the marginal revenue product of capital.
A bond with no expiration date has a face value of $10,000 and pays a fixed 10% interest. If the market price of the bond rises to $11,000, the annual yield approximately equals
A. 11%. B. 10%. C. 8%. D. 9%.
If the elasticity of demand for a good at a certain price is greater than one, we describe demand as _____.
(A) Unitary elastic (B) Elastic (C) Inelastic (D) Variable