One Source of the Supply of Dollars in the World

question 165

Multiple Choice

One source of the supply of dollars in the world is

• A) the purchase of U.S. exports by foreign residents.
• B) the sale of U.S. domestic assets to foreigner residents.
• C) U.S. imports of foreign merchandise.
• D) U.S. sales of gold to foreigner residents.

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Definitions:

GDP Deflator

A measure of inflation that divides the nominal GDP by the real GDP and then multiplies by 100, showing how much prices have changed over a specific period.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced in an economy in terms of constant prices.

Real GDP

Real GDP, or Real Gross Domestic Product, measures the value of all goods and services produced by an economy over a specific time period, adjusted for inflation.

Psychic Cost

The mental and emotional energy or stress involved in making a decision or taking an action, not typically measured in financial terms.