When a U.S. citizen buys $500 of Chinese-made parts for a motorcycle,
a. U.S. consumption falls by $500, U.S. net exports decline by $500, and U.S. GDP declines by $1000.
b. U.S. consumption does not change, U.S. net exports decline by $500, and U.S. GDP declines by $500.
c. U.S. consumption increases by $500, U.S. net exports remain the same, and U.S. GDP increases by $500.
d. U.S. consumption increases by $500, U.S. net exports decline by $500, and U.S. GDP remains the same.
d
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Which of the following would be included in GDP?
a. Production of computers by IBM in Japan b. The value of a car. c. The commission on the sale of your house. d. The value of childcare provided at home by the child's mother.
Which of the following gives the Fed a credibility problem because the Fed may change its planned policies in light of new economic developments?
a. Adaptive expectations b. Time inconsistency c. Wage expectations d. Disinflation e. Rational expectations
Hector puts $150 into an account when the interest rate is 4 percent. Later he checks his balance and finds he has about $168.73 . How long did Hector wait to check his balance?
a. 3 years b. 3.5 years c. 4 years d. 4.5 years
Which of the following people are liquidity providers?
A. Antiques dealer B. Bank teller C. Used car salesman D. All of these are considered liquidity providers.