Recall the Application about the impact inflation has on your potential future salary and the repayment of student loans to answer the following question(s).According to this Application, if you earn a salary of $40,000 in the first year and all prices triple in the next year. How will this affect the time it takes to pay off your school loans, assuming that you put all your earnings into paying it off? Assume that your debt is $40,000.
A. It will cut the payoff time to 1/3 of the original time.
B. It will cut the payoff time to 1/2 of the original time.
C. It will cut the payoff time to 2/3 of the original time.
D. It will triple your payoff time.
Answer: A
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As a result of the government's rescue of financial firms and the auto industry in 2008, which of the following occurred?
i) The government's demand for loanable funds increased the real interest rate. ii) Investment expenditures were crowded out. iii) The supply of loanable funds curve shifted leftward. A) ii and iii B) i only C) ii only D) i and ii E) i, ii and iii
Total profit is maximized where
A. MR = MC. B. marginal profit is zero. C. the slope of the marginal profit curve is zero. D. All of the responses are correct.
Barter can best be defined as:
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For an aggregate demand curve with = 10% and = 0%, if inflation is 6%, then real growth is:
What will be an ideal response?