1. GDP is calculated by summing ________.

consumption, investment, and exports of all final goods and services produced within the borders of a given country during a specific period

the dollar value of all final goods and services produced within the borders of a given country during a specific period

government expenditures within the borders of a given country during a specific period

the quantity of all final goods and services produced within the borders of a given country during a specific period

2. Which of the following is NOT a component of gross domestic product (GDP)?

Consumption

Investments

Net exports

Taxes

3. The CPI is a measure of the overall cost of the goods and services bought by ________.

foreign visitors to the United States

a typical U.S. consumer

government agencies such as the Bureau of Labor Statistics

typical U.S. businesses

4. The responsibilities of the U.S. Federal Reserve System include ________.

overseeing the banking system and regulating the quantity of money in the economy

setting the level of real interest rates

working with Congress to devise a financial plan for the country and execute the President's orders

calculating and reporting the unemployment rate

5. To increase the supply of money when the economy is weak, the Fed ________.

closes banks

reduces inflation

sells bonds

buys bonds

6. The federal funds rate is the short-term interest rate that ________.

banks charge their best customers when borrowing

banks earn on savings accounts with the Fed

banks charge each other when borrowing or lending to each other

the Fed charges banks when borrowing

7. When the Fed increases the money supply and consequently lowers interest rates, the value of the dollar ________.

will rise by more in the market for foreign exchange, all else equal

will fall, all else equal

is not impacted by Fed policy

will rise, all else equal