When the Fed conducts an open market sale, it leads to a higher ...

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When the Fed conducts an open market sale, it leads to a higher level of investment and output in the economy.
 
  Indicate whether the statement is true or false

Question 2

A new technology is discovered which results in all new cars producing 50 percent less pollution. Which of the following is true?
 
  A) Real GDP increases because the air is cleaner, but nominal GDP does not change since air is free.
  B) GDP will increase to reflect the fact that the air we breathe is cleaner.
  C) GDP will increase if there is an increase in the production cost and price of the car.
  D) GDP increases anytime pollution is reduced.
  E) GDP will decrease.

[yahahah24021]

Answer to Question 1

FALSE

Answer to Question 2

C

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Gracias!

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