One of the flaws of GDP is that it

A) includes measures of changes of quality of life associated with producing output.
B) includes measures of the underground economy.
C) includes only transactions that take place in formal businesses.
D) ignores transactions that do not take place in organized markets.

D

Economics

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The higher the default risk on a bond, the higher the interest rate will be

Indicate whether the statement is true or false

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In the IS-LM model, the expenditure multiplier is [1/(1-b)] when the

A) LM curve is horizontal. B) LM curve is upward-sloping. C) LM curve is vertical. D) IS curve is vertical.

Economics