Which of the following would be part of the nation's current account?
A) An old house purchased by an American in Italy
B) The purchase of a U.S. Treasury bond by a foreigner
C) The interest an American earns on a British bond
D) A factory built by the Japanese in the United States
C
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If the city mayor would perform mayoral duties for $10,000 because he just loves the limelight, but the salary for the position is $45,000 . then the mayor is earning
a. $10,000 rental income b. $35,000 professional rent c. $45,000 differential rent d. $35,000 wage-related rent e. $10,000 wage-related rent
Refer to the diagram for a private closed economy. At the $200 level of GDP:
A. consumption is $200 and planned investment is $50 so that aggregate expenditures are
$250.
B. consumption is $200 and planned investment is $100 so that aggregate expenditures are
$300.
C. consumption is $250 and actual investment is $50 so that aggregate expenditures are
$300.
D. aggregate expenditures fall short of GDP with the result that GDP will decline.