Question

1, Gross Domestic Product is equivalent to the sum of

	consumer spending, investment spending on capital goods, government purchases, exports, and imports.
	consumer spending, investment spending, government purchases and exports.
	consumer spending, capital inventory, government purchases and exports.
	consumer spending, capital inventory, government purchases, and net exports.
	consumer spending, investment spending, government purchases, and net exports.

2. Which of the following is consistent with advocates of rational expectations? If consumers fully anticipate an increase in interest rates, then

	real GDP will decrease by the value of the multiplier.
	real GDP will not change.
	price level will increase.
	unemployment will increase.

3.The government might finance deficit spending by

	borrowing money from the International Monetary Fund.
	issuing bonds.
	raising interest rates.
	increasing the reserve requirement.
	borrowing money from the World Bank.