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One bag of flour is sold for $1.00 to a bakery, which uses the flour to bake bread that is sold for $3.00 to consumers. A second bag of flour is sold to a consumer in a grocery store for $2.00. Taking these three transactions into account, what is the effect on GDP?
a. GDP increases by $2.00.
b. GDP increases by $3.00.
c. GDP increases by $5.00.
d. GDP increases by $6.00.
If a country wants to fix its exchange rate at a rate that is higher than the market rate, what monetary or fiscal policy must it use? If a country wants to fix its exchange r
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Friedman thought that problems with public education lay in the fact that: Friedman believed that the solution to higher education was different than public education because
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