A U.S. citizen buys a tea kettle manufactured in China by a company that is owned and operated by U.S citizens. In which of the following components of U.S. GDP is this transaction accounted for?
a. consumption and imports
b. consumption but not imports
c. imports but not consumption
d. neither consumption nor imports
a
Economics
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Comparing a discount bond and a coupon bond with the same maturity
A) the coupon bond has the greater effective maturity. B) the discount bond has the greater effective maturity. C) the effective maturity cannot be calculated for a coupon bond. D) the effective maturity cannot be calculated for a discount bond.
Economics
When a government imposes a price floor on a good that is above the market equilibrium price
A) a surplus will develop. B) a shortage will develop. C) producers will increase their sales price. D) consumers will increase their demand for the good.
Economics