National income is calculated as GDP:
a. plus depreciation.
b. plus exports.
c. minus imports.
d. minus depreciation.
Question 2
Which of the following correctly describes the interest-rate effect?
a. If the price level decreases, consumer purchasing power decreases, the demand for credit rises, interest rates rise, debt-financed borrowing decreases, and real GDP demanded falls.
b. If the price level decreases, consumer purchasing power increases, the demand for credit rises, interest rates rise, debt-financed borrowing decreases, and real GDP demanded falls.
c. If the price level decreases, consumer purchasing power increases, the demand for credit falls, interest rates rise, debt-financed borrowing decreases, and real GDP demanded falls.
d. If the price level decreases, consumer purchasing power increases, the demand for credit falls, interest rates fall, debt-financed borrowing increases, and real GDP demanded increases.
Elk at the Opal terrace at Mammoth Hot Springs, Yellowstone National Park
An albatross chick at Northwest Hawaiian Islands National Monument, Midway Atoll.
In 2013, Americans learned that the federal government massively surveys their phone calls and e-mai
How the Return to Education Affects the Distribution of Income