Suppose your bank pays you 4 percent interest per year on your savings account, so that $1,000 grows to $1,040 over a one-year period. If prices increase by 1 percent per year over that time, approximately how much real value do you gain by keeping $1000 in the bank for a year?
A. $0
B. $10
C. $30
D. $50
Answer: C
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The Coase Theorem is the proposition that private economic transactions are efficient if the number of involved parties is small, if property rights ________, and transactions costs are ________
A) exist; high B) exist; low C) do not exist; high D) do not exist; low
Which of the following will cause the long-run aggregate supply curve to shift? I. Changes in technology II. Changes in government spending III. Changes in the money supply
A) I only B) II only C) I, II, and III D) only I and II
If a the price index was 60 in 2000 and the price index was 90 in 2009, the best estimate of the annual inflation rate between 1998 and 1999 is:
a. 15%. b. 40%. c. 50%. d. 90%. e. 7/5.
New firms will likely enter a monopolistically competitive market when price exceeds
a. marginal revenue. b. average revenue. c. marginal cost. d. average total cost.