Tom Atoe grows fruits and vegetables for home consumption. This activity is:
A. excluded from GDP in order to avoid double counting.
B. excluded from GDP because an intermediate good is involved.
C. productive but is excluded from GDP because no market transaction occurs.
D. included in GDP because it reflects production.
Answer: C
Economics
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If a trader thinks that the value of yen with respect to the euro is about to fall, which of the following would enable him to make a profit?
A) buy a forward contract for euros B) buy a forward contract for yen C) sell yen in the spot market D) buy euros in the spot market
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The reduction in private borrowing that is caused by an increase in government borrowing is called:
A. surplus investment. B. the savings effect. C. the dissaving effect. D. the crowding out effect.
Economics