If real GDP for 2009 is $6400 billion and nominal GDP for 2010 is $6720 billion (in 2010 dollars), then the growth rate of real GDP is

An indirect flow of funds occurs when

A) funds flow from saver-lenders to borrower-spenders through financial intermediaries. B) funds flow from saver-lenders to borrower-spenders through financial markets. C) funds flow to saver-lenders from borrower-spenders through financial intermediaries. D) funds flow to saver-lenders from borrower-spenders through financial markets.

In a market characterized by many sellers, assume that transaction costs for both buyers and sellers are both costlessly cut to zero. What will happen to total economic value?

a. Economic value will remain unchanged because the decrease in consumer surplus will offset the increase in producer surplus. b. Economic value will remain unchanged because the decrease in producer surplus will offset the increase in consumer surplus. c. Economic value will certainly increase but its magnitude will depend on the initial transaction costs of the market participants. d. Economic value will certainly decrease but its magnitude will depend on the initial transaction costs of the market participants.