National income is calculated as GDP: a. plus depreciation. b. ...

[crobinson2013]

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.

[marict]

Answer to Question 1

d

Answer to Question 2

d