You are asked to lend a friend $20,000 for a year. At the end of the year your friend agrees to pay you $21,000. The interest rate on this loan is
A. 4.50%
B. 5.00%.
C. 5.50%.
D. indeterminate from this information.
Answer: B
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If Congress reduced the period of patent protection from 20 years to 10 years, what would likely happen to the amount of private research and development?
A. Shorter patent protection would make innovation less lucrative, so the amount of research and development would likely decline. B. Companies would simply stop their research and development. because the cost is not worth the return. C. Companies would spend more on research because the patent period is shorter. D. Companies would not likely change their research and development amounts because they need innovation to survive.
Suppose the interest rate is 6% and compounded annually. What is the present discounted value of 6 future annual payments of $150?
A. $634.46 B. $737.60 C. $849.06 D. $900.00
Unemployment that results from an economy-wide downturn is called: a. frictional unemployment. b. cyclical unemployment
c. structural unemployment. d. seasonal unemployment.
Farmers as a group generally prefer bad weather to good weather because bad weather shifts the demand curve for their product rightward and raises the price of their product
Indicate whether the statement is true or false