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EC 211 Study for Test 2 Questions and Answers (100% Pass)2

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If a farmer sells $10,000 worth of cereal to Kellog's, how much does that contribute to GDP? $0 Which can be considered transfer payments? The state of Florida payment of an unemployment insurance benefit If you purchase a newly constructed home, which component of GDP is this purchase included in? Investment Nominal GDP is adjusted for inflation. False The CPI is typically a good leading indicator of the PPI. False A problem faced when measuring the cost of living is: Master01 | October, 2024/2025 | Latest update 1 | P a g e | © copyright 2024/2025 | Grade A+ The introduction of new products, quality of change, substitution bias Banks typically advertise the... nominal interest rate Credit cards typically advertise the... nominal interest rate M1 Money Supply includes savings deposits but not checking deposits False If the US wants to borrow money, it can sell bonds. True The Federal Open Market Committee is... Part of the Federal Reserve (Central Bank) The term double coincidence of events refers to a barter economy. True Master01 | October, 2024/2025 | Latest update 1 | P a g e | © copyright 2024/2025 | Grade A+ Checking deposits are more liquid than demand deposits. False (they're the same thing) The most liquid asset (other than cash) owned by the average U.S. family is: Demand d

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1|Page | © copyright 2024/2025 | Grade A+




EC 211 Study for Test Questions and
Answers (100% Pass)2
If a farmer sells $10,000 worth of cereal to Kellog's, how much does that

contribute to GDP?


✓ $0




Which can be considered transfer payments?


✓ The state of Florida payment of an unemployment insurance benefit




If you purchase a newly constructed home, which component of GDP is this

purchase included in?


✓ Investment




Nominal GDP is adjusted for inflation.


✓ False




The CPI is typically a good leading indicator of the PPI.


✓ False




A problem faced when measuring the cost of living is:

Master01 | October, 2024/2025 | Latest update

, 1|Page | © copyright 2024/2025 | Grade A+

✓ The introduction of new products, quality of change, substitution bias




Banks typically advertise the...


✓ nominal interest rate




Credit cards typically advertise the...


✓ nominal interest rate




M1 Money Supply includes savings deposits but not checking deposits


✓ False




If the US wants to borrow money, it can sell bonds.


✓ True




The Federal Open Market Committee is...


✓ Part of the Federal Reserve (Central Bank)




The term double coincidence of events refers to a barter economy.


✓ True




Master01 | October, 2024/2025 | Latest update

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