Suppose a pickpocket steals your $20 bill and spends all of it on pizza and beer. What happens to GDP?
A) GDP increases by twenty dollars.
B) GDP decreases by twenty dollars.
C) Because the positive balances out the negative, GDP remains unchanged.
D) GDP decreases because somebody has clearly been made worse off.
A
Economics
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Suppose k = 0.25. With a $10 billion decrease in the money supply, the LM curve shifts
A) to the left by $40 billion. B) to the left by $4 billion. C) to the left by $2.5 billion. D) to the right by $0.25 billion.
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Capital flight raises a country's interest rate
a. True b. False Indicate whether the statement is true or false
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