The expenditure approach to calculating GDP for an open economy entails adding consumption, investment, and government purchases

Congress created the Federal Reserve System

A) to serve as a lender of last resort. B) to process the receipt of taxes received by the Internal Revenue Service. C) to regulate the value of the U.S. dollar against foreign currencies. D) to provide a source of mortgage loans to the residential housing market.

According to the substitution effect, an increase in the price of oranges will: a. cause consumers to consume fewer apples because more money is spent on oranges

b. cause consumers to spend more on oranges because a higher price signals that oranges are better than apples. c. cause consumers to replace some oranges with other fruit that is now relatively cheaper than oranges. d. leave consumers with less money to spend on all goods.