Author Question: Stocks and bonds: a. Are both components of gross private domestic investment. b. Are not a part ... (Read 36 times)

DyllonKazuo · **on:** Jun 30, 2018

Stocks and bonds:
a. Are both components of gross private domestic investment.
b. Are not a part of gross private domestic investment, because to include them would be double counting a nation's assets and liabilities.
c. Are not a part of gross private domestic investment, because to include them would be double counting a nation's personal consumption and investment.
d. Are not a part of gross private domestic investment, because they are a part of financial services, which are a separate component of GDP.
e. None of the above.

Question 2

Suppose that Venezuela experiences significant capital outflows after a recent election. If the nation had flexible exchange rates, these flows would have had the following effect on the financial account and monetary base.
a. Financial account would rise and reserves account would fall.
b. Financial account would not change and reserves account would fall.
c. Financial account would not change and reserves account would not change.
d. Financial account would fall and monetary base would not change.
e. Financial account would fall and reserves account would rise.