When Toyota in Japansells Camry sedan out of inventory, assuming that there is no other change, then GDP of Japan

a.increases

b.decreases

c.remains the same

d.increases or decreases, depending on the year the Camrysedanswere produced

e.none of the above.

Suppose that President Trump recently signed bills which increased military spending while lowered income taxes . What are the impact of his policies on real interest rate and investment if USA were a closed economy and 0 < MPC < 1.

a.Both private saving and real interest rate would increase. But investment would fall.

b.Private saving would increase, leading to a fall in real interest rate and hence boosting investment.

c.Public saving would fall but private saving would increase. But real interest rate might fall or increase. Thus

investment might increase or fall.

d.Both public saving and private private saving would decrease. So real interest rate will increase and hence investment will fall.

e.None of the above

An increase in the nominal GDP by 5% can correspond to

a.a decrease of real GDP by 10% and an increase of prices by 5%.

b.an increase of real GDP by 9% and an increase of prices by 4%.

c.an increase of real GDP by 4% and a decrease of prices by 1%.

d.a decrease in real GDP by 2% and an increase of prices by 3%.

e.a decrease of real GDP by 5% and an increase of prices by 10%.