If Jim pays $1000 to John:
a. GDP will increase by $1000
b. GDP will increase, but we cannot determine by what amount.
c. nominal GDP will increase, but we cannot be sure if real GDP will increase or decrease.
d. we need more information in order to determine whether or how much GDP will change.
d
Economics
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What will be an ideal response?
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A lottery promises a $250,000 prize. But the prize money is paid out in $50,000 annual installments with the first installment received today.. The winner is offered the option of an immediate lump-sum payment. If the interest rate remains at 10 percent for the entire period, what is the smallest amount the winner should accept?
a. $189,540 b. $192,970 c. $208,494 d. $225,000
Economics