Discounting involves dividing next-period income by ________
A) one plus the real rate of interest
B) the nominal rate of interest
C) current income
D) the real rate of interest
A
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The Federal Open Market Committee (FOMC)
A. provides advice on banking stability to the Fed. B. follows the actions and operations of financial markets to keep them open and competitive. C. sets policy on the sale and purchase of government bonds by the Fed. D. monitors regulatory banking laws for member banks.
If point A on an indifference curve lies higher (measured vertically) than point B on the same curve, Point A automatically represents higher total utility than point B.
Answer the following statement true (T) or false (F)
If Slovenia is a large country in world trade, then if it imposes a large set of tariffs on many of its imports, this would
A) improve its terms of trade. B) have no effect on its terms of trade. C) harm its terms of trade. D) decrease its marginal propensity to consume. E) increase its exports.
What is a seller's opportunity cost?