Which of the following economic activities is ignored in GDP accounts?
A) The market value of medical services
B) The market value of educational services
C) The market value of illegal drugs
D) The market value of prescription drugs
E) The market value of the services associated with used-car dealers
C
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What impact does the Fed's raising the interest rate have on the money supply and on the price level?
A) An increase in interest rates raises the money supply and eventually reduces prices. B) An increase in interest rates lowers the money supply and raises the money demand, which will neutralize price increases. C) An increase in interest rates will increase investment spending and GDP, which will lower prices. D) An increase in interest rates reduces the money demand which will slow the growth in prices.
In periods of restrictive monetary policy, which of the following industries are likely to feel a disproportionately large impact of the policy?
A. The auto industry. B. Soft drink companies such as Coke and Pepsi. C. Cell phone service providers. D. Fast-food restaurants.