Tim put $275 in the bank one year ago and forgot about it. Today, the bank sent Tim a statement indicating that he now has $294.25 in his account. What interest rate did Tim earn?
a. 5 percent
b. 6 percent
c. 7 percent
d. 8 percent
c
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The cross-price elasticity of demand measures how sensitive purchases of a specific product are to changes in
A. the price of that same product. B. the price of some other product. C. the general price level. D. income.
In 2008, the Bank of England increased the country's money supply and lowered its interest rate. This policy was designed to
A) encourage people to buy more goods and services. B) shift the aggregate demand curve rightward. C) cause a movement up along the aggregate demand curve. D) Both A and B are correct.
One aspect of prospect theory is that people tend to
A) be very risk averse to large gains. B) be very risk averse to losses. C) love losses more than gains. D) hate gains regardless of potential losses.
See Scenario 4.1. Holding Daniel's income and Pd constant at $240 and $3 respectively, what is Daniel's demand curve for cake?
A) Qc = 240 - Pc B) Qc = 240/Pc C) Qc = 120/Pc D) Qc = 240/(3 + Pc) E) none of the above