If Y=C+I+G but Md< Ms, then a. interest rates must rise and ...

[kshipps]

If Y=C+I+G but Md< Ms, then
 
  a. interest rates must rise and output must fall.
  b. both interest rates and output must fall.
  c. interest rates must fall and output must rise.
  d. both interest rates and output must rise.
  e. none of the above.

Question 2

Which of the following helps economists avoid double counting in computing of GDP?
 
  a. Including goods and services produced only within a given area.
  b. Only include transfer payments made by the government and not individuals.
  c. Only include capital purchases by corporations and not by family-owned firms.
  d. Avoiding the use of intermediate goods in calculating GDP.

[maya.nigrin17@yahoo.com]

Answer to Question 1

C

Answer to Question 2

D

[kshipps]

Gracias!

[kthug]

Excellent