In computing GDP, new home construction adds to

Suppose a video craze in the United States makes a particular Japanese-produced video game very popular. This would tend to:

a. affect the U.S. balance of payments but not the balance of trade. b. reduce any existing balance of trade deficit in the United States. c. increase the balance of trade deficit of the United States d. increase the balance of trade surplus of the United States.

The real interest rate is the

a. interest rate corrected for inflation. b. interest rate as usually reported by banks. c. difference between the interest rate charged by banks on the loans they make and the interest rate paid by banks to their depositors. d. difference between the average dividend yield on stocks and the average interest rate on bonds.