In the calculation of GDP by the expenditure approach, exports from the United States must be
A) subtracted because they are included in the consumption of a foreign country.
B) ignored because they are not bought by U.S. citizens.
C) subtracted if they are bought by foreign firms for investment purposes.
D) added.
D
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As Mary's income increases by 20 percent, her demand for tickets to National Hockey League games increases by 10 percent. Mary's demand for tickets is income ________; for Mary, hockey tickets are ________ good
A) elastic; a normal B) inelastic; a normal C) elastic; an inferior D) inelastic; an inferior
During a period of inflation, the Fed is likely to:
a. sell government securities to banks in order to reduce the amount of loanable funds. b. buy government securities from banks in order to reduce the amount of loanable funds. c. raise taxes in order to reduce the money supply. d. cut the required reserve ratio in order to reduce the amount of excess reserves banks have to loan out. e. cut the discount rate in order to increase the affordability of loanable funds.