Adding wages, interest, rent, and profits yields
A) net domestic product at factor cost.
B) gross domestic product at factor cost.
C) total expenditure.
D) GNP.
E) gross domestic product.
A
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Which of the following would be part of the nation's current account?
A) An old house purchased by an American in Italy B) The purchase of a U.S. Treasury bond by a foreigner C) The interest an American earns on a British bond D) A factory built by the Japanese in the United States
Answer the following statements true (T) or false (F)
1) If the MPC is .8 in a private closed economy, a $30 billion increase in planned investment will increase equilibrium real GDP by $120 billion. 2) Actual investment consists of planned investment plus unplanned changes in inventories (plus or minus). 3) A $20 billion decrease in investment in a private closed economy that has an MPS of .5 will reduce saving by $10 billion once the multiplier process has ended. 4) Exports are added to, and imports are subtracted from, aggregate expenditures in moving from a closed to an open economy.