John Maynard Keynes believed the ideas of economists to be

Refer to the scenario above. Which of the following will happen if Sarah opens a day care facility and takes care of 5 children, in addition to her son, charging $12,000 per year for each child?

A) The country's trade deficit will increase by $2,400. B) The country's trade surplus will increase by $12,000. C) The country's GDP will decrease by $12,000. D) The country's GDP will increase by $60,000.

If you lend a dollar for a year and at the end of the year the price level has risen by 10 percent

A) the purchasing power of your loan has risen over the year regardless of the interest rate at which you lent it. B) the purchasing power of your loan has remained constant over the year regardless of the interest rate at which you lent it. C) you must have earned a nominal interest rate of 10 percent to maintain the purchasing power of your loan. D) you must have earned a nominal interest rate of 5 percent to maintain the purchasing power of your loan.