Author Question: Dividing (P x Q) by V2 times gives: a. A stock value b. A flow value. c. Neither a stock nor a ... (Read 58 times)

azncindy619 · **on:** Jun 30, 2018

Dividing (P x Q) by V2 times gives:
a. A stock value
b. A flow value.
c. Neither a stock nor a flow value.
d. Real GDP

Question 2

If a government spends 20 billion on new bridges that have an expected life of 20 years, the expenditures would:
a. Increase government spending and government expenses by the full 20 billion even though a business would expense them over the 20-year period.
b. Not change government spending and therefore would not change the government deficit because they are capital expenditures.
c. Increase total government spending by the full amount (i.e., 20 billion), but only 1 billion of it would be considered part of the budget deficit because the 20 billion is amortized over the 20 years.
d. Initially increase the budget deficit by an amount equal to 20 billion, but only 1 billion of it would be considered part of the government spending because the 20 billion is amortized over the 20 years.