Question:

Heineken, a company based in the Netherlands, produces beer in Thailand. The beer that it produces in Thailand enters in the ____________ GDP and the ____________ GNP.

Question:

Which of the following is NOT true about the real interest rate?

1. As the real interest rate rises investment decreases.
2. Real interest rate = nominal interest rate + inflation
3. In a closed economy, the real interest rate adjusts to equate Savings with Investment
4. The real interest rate is the cost of borrowing.

Question:

Suppose a bank has the following balance sheet.

Liabilities and Owner's Equity Reserves S500 Deposits $1,300 Loans $1,000 Debt 5300 Securities S300 Owner's Equity $200