Tony lent Dave $1,000 for one year with the understanding that Dave would repay $1,070 . If the actual inflation rate was 7 percent, then the real rate of interest Tony received is _____
a. 14 percent
b. 7 percent
c. 4 percent
d. 0 percent
e. ?7 percent
d
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If the equilibrium exchange rate of the dollar is 1.10 euros per dollar and currently the exchange rate is 0.90 euros per dollar, then there is a ________ of dollars that leads to ________
A) surplus; the supply curve of dollars shifting leftward B) shortage; a rise in the exchange rate C) surplus; a rise in the exchange rate D) shortage; the supply curve of dollars shifting rightward E) shortage; the demand curve for dollars shifting rightward
Refer to Table 17-1. Suppose the output price is $3. If the wage rate is $90, what is the profit-maximizing quantity of labor that the firm should hire?
A) 7 units B) 5 units C) 4 units D) 3 units
Reduction in quantity demanded of a good when its price increases because of a consumer's decreased purchasing power is termed as: a. income effect
b. substitution effect. c. utility effect. d. marginal effect.
Based on this graph, the multiplier effect shifts the aggregate demand curve from ______.
a. AD1 to AD2
b. AD2 to AD1
c. AD2 to AD3
d. AD1 to AD1