Sarah takes care of her son instead of sending him to a day care which charges $12,000 annually. Which of the following will happen if she puts him into a day care?
A) The country's GDP will increase by $12,000.
B) The country's GDP will remain unchanged.
C) The country's GDP will decrease by $12,000.
D) The country's trade deficit will increase by $12,000.
Answer: A) The country's GDP will increase by $12,000.
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The quantity equation states that the
A) money supply times the velocity of money equals the price level times real output. B) money supply times the price level equals real output divided by the velocity of money. C) money supply divided by the velocity of money equals the price level divided by real output. D) money supply times the price level equals real output times the velocity of money.
Brazil's 1999 crisis was relatively short lived because
A) Brazil's financial institutions had avoided borrowing all together. B) Brazil's financial institutions had avoided heavy borrowing in local currency. C) Brazil's financial institutions had avoided heavy borrowing in dollars. D) Brazil's financial institutions had extended low-interest loans. E) Brazil's financial institutions had extended high-interest loans.
If money is declared to be legal tender, it must be
A) minted from a precious metal. B) acceptable to citizens of foreign countries. C) possible to exchange it for an equivalent amount of precious metal. D) accepted to settle private transactions and it must be used in paying taxes.
Any supply curve that is a straight line passing through the graph's origin is unit elastic
a. True b. False