If Camila's income rises by 20 percent, and, as a result, she purchases 40 percent more dresses, her income elasticity for dresses is

Consider two items that might be included in GDP: (1) the estimated rental value of owner-occupied housing and (2) purchases of newly-constructed homes. How are these two items accounted for when GDP is calculated?

a. Both item (1) and item (2) are included in the consumption component of GDP. b. Item (1) is included in the consumption component of GDP, while item (2) is included in the investment component of GDP. c. Item (1) is included in the investment component of GDP, while item (2) is included in the consumption component of GDP. d. Only item (2) is included in GDP, and it is included in the investment component.

Other things being equal, during a period when the federal government issues more Treasury securities to borrow funds

A. the flow of government expenditures during that period must exceed the stock of tax collections. B. the flow of government expenditures during that period must exceed the flow of tax revenues. C. the stock of government deficit spending during that period must exceed the stock of tax collections. D. the stock of government deficit spending during that period must exceed the flow of tax revenues.