Fred the farmer purchased five new tractors at $20,000 each. Fred sold his old tractors to other farmers for $50,000. The net increase in GDP of these transactions was

In a typical domestic lending boom, almost all of the amount borrowed is dedicated toward investments that bring about substantial future gains.

Answer the following statement true (T) or false (F)

A reduction in the required reserve ratio would cause the interest rates to

A. increase only if the level of investment is low relative to historic levels. B. decrease. C. increase. D. increase only if the level of unemployment is high.