Ariana withdrew $400,000 out of her personal savings account and used it to start her new Internet cafe. The savings account pays 3 percent interest per year. During the first year of her business, Ariana sold 2,000 cups of coffee for $2.50 per cup and 4,000 hours of Internet time, also at $2.50 per hour. During the first year, the business made monetary outlays of $9,000 . You may assume that
there is no opportunity cost to Ariana's time. Ariana's accounting profit for the year was
a. $-394,000.
b. $-6,000.
c. $6,000.
d. $12,000.
c
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Explain the difference between correlation and causation
What will be an ideal response?
"With autonomous changes in the policy interest rate, the Federal Reserve cannot determine the long run equilibrium level of the real interest rate or potential output and will only be able to determine inflation"
This statement is consistent with ________. A) the notion that shifts in the MP curve may lead to shifts in the AD and AS curves but the LRAS remains unchanged B) the notion of long-run independence between nominal and real variables C) the notion of monetary neutrality D) all of the above E) none of the above
A depreciation in Micromania's currency, the micro, occurs when the exchange rate changes from
a. 50 micros = $2 to 25 micros = $1 b. 100 micros = $2 to 200 micros = $1 c. $1 = 75 micros to $2 = 100 micros d. $3 = 75 micros to $1 = 25 micros e. $1 = 50 micros to $2 = 50 micros
In a competitive market, the market demand is Qd = 60 - 6P and the market supply is Qs = 4P. A price floor of $9 will result in a
A. shortage of 12 units. B. surplus of 12 units. C. shortage of 30 units. D. surplus of 30 units.