If a country had a real GDP of $500 million, and the GDP deflator was110, what is the nominal GDP?

The reason that velocity increases when interest rates rise is

A. the Fed encourages banks to turn money in faster for recycling, which causes money to move faster. B. the opportunity cost of saving increases, so people hold smaller cash balances. C. home mortgage payments increase, so people write larger checks that reduces their checking account balances. D. the opportunity cost of holding money increases, so average money balances decrease.

In the 1960s, each firm in the computer industry was able to make extremely large profit margins, some as high as 50 to 60 percent. The margin decreased to 20 to 40 percent in the 1970s and to 10 to 20 percent in the 1980s. We conclude that:

A. lower profit margins were due to the government's regulation to protect consumers. B. market power increased in the two decades. C. the industry evolved from oligopolistic to a more competitive industry in the two decades. D. lower profit margins were largely due to the mismanagement of computer firms.