PART 1. The following statements represent a transaction or event that may or may not have an impact on one or more) of the macroeconomic variables for the United States (the macroeconomic variables of interest here are consumption, investment, government expenditures, exports, and imports). If the transaction/event does not impact any of the macroeconomic variables, write "neither." If the transaction/event impacts one or more macroeconomic variable(s), indicate (1) which variables (using the appropriate notation), (2) the direction of the effect (increase or decrease), and (3) the amount of the effect. a. The city of College Park pays an intern $3,600 for work during the summer b. The summer intern then pays $1,600 rent C. For her coursework, the intern purchases $120 of books which she purchases from a popular online retailer located in the United Kingdom d. Oh no! The intern must pay tuition to the University of Maryland. The tuition amount is $3650 e. Because of the tuition payment, the student has no more money. She decides to borrow $3,050 in student loans from the U.S. government 3 f. The student decides that, because of an intermediate macroeconomics course, she needs a vacation! She decides to fly to Paris using a domestic (U.S.) airline. The price of the ticket was $200 (wow!). g. In France, the student decides to stay in a local hotel (a hotel owned by a French firm). The cost of the hotel stay was 160 euros. The cost of the euro is $2.00 USD. h. While away, the landlord decides to renovate the apartment of the student. The landlord therefore spends $7,700 making the apartment all shiny and new! PART 2. What was the total impact of all of the above transactions ((a) through (h)) on the U.S. gross domestic product? PART 1. The following statements represent a transaction or event that may or may not have an impact on one or more) of the macroeconomic variables for the United States (the macroeconomic variables of interest here are consumption, investment, government expenditures, exports, and imports). If the transaction/event does not impact any of the macroeconomic variables, write "neither." If the transaction/event impacts one or more macroeconomic variable(s), indicate (1) which variables (using the appropriate notation), (2) the direction of the effect (increase or decrease), and (3) the amount of the effect. a. The city of College Park pays an intern $3,600 for work during the summer b. The summer intern then pays $1,600 rent C. For her coursework, the intern purchases $120 of books which she purchases from a popular online retailer located in the United Kingdom d. Oh no! The intern must pay tuition to the University of Maryland. The tuition amount is $3650 e. Because of the tuition payment, the student has no more money. She decides to borrow $3,050 in student loans from the U.S. government 3 f. The student decides that, because of an intermediate macroeconomics course, she needs a vacation! She decides to fly to Paris using a domestic (U.S.) airline. The price of the ticket was $200 (wow!). g. In France, the student decides to stay in a local hotel (a hotel owned by a French firm). The cost of the hotel stay was 160 euros. The cost of the euro is $2.00 USD. h. While away, the landlord decides to renovate the apartment of the student. The landlord therefore spends $7,700 making the apartment all shiny and new! PART 2. What was the total impact of all of the above transactions ((a) through (h)) on the U.S. gross domestic product
