Author Question: An example of investment in the national income accounts is the purchase of A) a new van by a ... (Read 97 times)

formula1 · **on:** Jun 29, 2018

An example of investment in the national income accounts is the purchase of

A) a new van by a potter, who packs it with his wares and travels to art shows.
B) 100 shares of Intel stock on the New York Stock Exchange.
C) a 100-year-old house that was just put on the protected historic sites list in the year in question.
D) a U.S. government bond.

Question 2

Suppose the exchange rate of the U.S. dollar was 1.00 euro = 0.50 on Thursday, and on Friday the exchange rate was 1.00 = 2.10 euros. Which of the following best explains what has happened between Thursday and Friday?

A) The U.S. dollar appreciated against the euro.
B) The euro appreciated against the U.S. dollar.
C) The U.S. dollar depreciated against the euro.
D) Both answers B and C are correct.