Which of the following statements is correct?
a. Interest would not exist in a nonmonetary economy.
b. The present value of a future dollar payment is directly related to the interest rate.
c. The present value of a fixed dollar payment to be received in the future will decline as the length of the time before the payment will be received increases.
d. During an extended inflationary period, the money (or nominal) interest rate will usually be lower than the real rate of interest.
C
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An increase in the domestic interest rate relative to other interest rates should
A) increase net exports. B) increase investment spending. C) decrease consumption spending. D) increase government spending.
In a small country, there are 5,000 people in the labor force and 3,000 people are employed. The labor force participation rate equals
A) 40 percent. B) 60 percent. C) 62.5 percent. D) an undetermined amount given the lack of information.
An example of a capability considered in the capabilities approach would be:
A. earning a livable wage. B. living free of the fear of violence C. being able to afford a nice home. D. to have the ability to purchase an item you really want.
The equilibrium price is the same as the market-clearing price
a. True b. False Indicate whether the statement is true or false