Author Question: If imports are 100 million less than exports, government expenditures are 500 million, consumer ... (Read 61 times)

ashley · **on:** Jun 29, 2018

If imports are 100 million less than exports, government expenditures are 500 million, consumer expenditures are 1 billion, and gross investment spending is 500 million, then GDP is

A) 1 billion.
B) 1.9 billion.
C) 2 billion.
D) 2.1 billion.

Question 2

Suppose Mitsubishi Bank (a Japanese bank) expects the exchange rate to be 125 yen per U.S. dollar at the end of the year. If today's exchange rate is 120 yen per U.S. dollar, Mitsubishi bank

A) buys U.S. dollars today because it expects profit from buying U.S. dollars and holding them.
B) sells U.S. dollars today because it expects losses from buying U.S. dollars and holding them.
C) does not buy or sell any U.S. dollars today because it expects zero profit from buying U.S. dollars and holding them.
D) None of the above answers is correct because a foreign commercial bank cannot buy or sell U.S. dollars.