Which of the following is NOT part of GDP calculated using the expenditure approach?
A) General Motors' purchases of new capital equipment
B) expenditures by the federal government for national defense
C) Social Security payments made to the elderly
D) the purchase of new homes by consumers
Question 2
The law of demand for dollars in the foreign exchange market means that the
A) lower the exchange rate, the greater the quantity of dollars demanded.
B) higher the exchange rate, the smaller the quantity of dollars demanded.
C) lower the exchange rate, the smaller the quantity of U.S. exports demanded.
D) Both answers A and B are correct.
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