Additions to inventory are
A) not counted as an expenditure in GDP accounting.
B) counted as an intermediate input.
C) counted as a component of investment spending.
D) subtracted from sales revenue in calculating profit income.
Question 2
Through open market operations, the Fed
A) controls the demand for reserves, but not the supply of reserves, in the banking system.
B) controls the supply of reserves and the demand for reserves in the banking system.
C) controls the supply of reserves, but not the demand for reserves, in the banking system.
D) has influence over, but cannot directly control, the supply of reserves and the demand for reserves in the banking system.
