In the national income accounts, the purchase of a new house counts as
A) consumption expenditure.
B) investment.
C) a transfer.
D) an addition to inventory.
B
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If the government wants to encourage spending on research and development, it should
a. reduce patent protection so many individuals can use new products in their own research b. shorten the number of years during which a developer has exclusive patent rights to market an invention c. increase the number of years during which an inventor has exclusive patent rights to market an invention d. raise tax rates on corporate profits to raise money for the research e. encourage firms and households to spend money instead of saving it
Every time the Fed buys or sells on the open market, the __________ changes
A) budget deficit B) income tax rate C) money supply D) a and b E) a, b, and c