QUESTION 1 A company in the US invests in developing new computer software. How will this affect the US GDP? O a. increase O b. decrease O c. no effect QUESTION 2 Consider the following events and decide what their direct effect on GDP is. (1) A couple buys two tickets for the show "O" in Las Vegas. (2) A family buys long-term bonds to save for the future. (3) Dave sells his old motorbike to his neighbor. O a. Events (1) and (2) increase GDP, but (3) does not. b. Event (1) increases GDP, but (2) and (3) do not. O c. Event (2) increases GDP, but (1) and (3) do not. QUESTION 3 Consider the following two statements: (1) The main reason people demand and hold money (instead of, e.g., bonds) is that it earns interest payments. (2) The Fed uses the monetary policy tool of open market operations to affect interest rates. O a. Both statements are correct. O b. Both statements are incorrect. O c. Statement (1) is correct but (2) is not. O d. Statement (2) is correct but (1) is not