Which of the following expenditures would not be included in GDP?
a. Purchase of a new lawnmower.
b. Purchase of a silver cup previously sold new in 1950.
c. Purchase of a ticket to the latest movie.
d. All of these would be counted in GDP.
b
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The IS curve plots for each level of income the ________ that causes income to equal ________
A) interest rate, planned expenditures B) interest rate, planned autonomous spending C) planned autonomous spending, planned expenditures D) planned autonomous spending, planned autonomous spending
Why are U.S. government securities referred to as a bank's secondary reserves?
A) Their current market value may count toward meeting a bank's legal reserve requirements. B) They are very liquid. C) Banks are legally required to hold a certain minimum amount of these securities. D) They are the same thing as vault cash.