Everything else the same, if government expenditure increases by 400 billion and imports increase by 400 billion, then GDP
A) increases by 400 billion.
B) increases by 200 billion.
C) decreases by 400 billion.
D) does not change.
E) decreases by 200 billion.
Question 2
Legal ceilings on the rate of interest charged to individuals
A) guarantee credit is allocated according to need rather than ability to pay.
B) make it easier for people with poor credit ratings to obtain loans.
C) reduce the probability corporations will obtain scarce credit by bidding funds away from consumers.
D) accomplish all of the above.
E) accomplish none of the above.
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In 2008, the U.S. economy suffered a gaping wound as several trillion dollars were ripped out of it.
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