Refer to the scenario above. Which of the following will happen if Sarah opens a day care facility and takes care of 5 children, in addition to her son, charging $12,000 per year for each child?
A) The country's trade deficit will increase by $2,400.
B) The country's trade surplus will increase by $12,000.
C) The country's GDP will decrease by $12,000.
D) The country's GDP will increase by $60,000.
D
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Which of the following factors will result in the greatest amount of money being created?
a) A $1,000 cash deposit into a checking account. b) A $1,000 transfer from a checking account to a savings account. c) $1,000 in coins that is converted into $1,000 in bills. d) A $1,000 bond that matures which is used to buy another $1,000 bond.
The additional incentive that the purchaser of a Treasury security requires to buy a long-term security rather than a short-term security is called the
A) risk premium. B) term premium. C) tax premium. D) market premium.