Other things the same, as the price level rises, the real value of a dollar
a. rises, and interest rates rise.
b. rises, and interest rates fall.
c. falls, and interest rates rise.
d. falls, and interest rates fall.
c
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St. Mary's Church has a balloon payment of $100,000 due on its mortgage in two years. If the interest rate is 8 percent, the present value of St. Mary's balloon mortgage payment is
A) $100,000.00. B) $116,640.00. C) $85, 733.88. D) None of the above answers is correct.
When a country imposes a per-unit (ad-valorem) tariff on an imported good or service then, the price that domestic consumers pay for the import falls
Indicate whether the statement is true or false
If the absolute price elasticity of demand is 2.5, a 10 percent increase in the price will cause
A) the quantity demanded to decrease by 2.5 percent. B) the quantity demanded to decrease by 25 percent. C) the quantity demanded to decrease by 4 percent. D) the quantity demanded to decrease by 40 percent.
If the saving function is of the form [S = -15 + 0.4Y], consumption at an income level of 200 is
A. 80. B. 105. C. 135. D. 185.