Interest is the:
A. price paid for the use of money.
B. opportunity cost of time.
C. expectation of a future return on investment.
D. reward for consuming rather than saving.
Answer: A
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Which of the following is a true measure of national output?
a. GDP at market price b. Nominal GDP c. GDP in current dollars d. GDP in constant dollars
Suppose the government taxes 30 percent of the first $70,000 and 50 percent of all income above $70,000 . For a person earning $100,000 . the marginal tax rate is
a. 30 percent, and the average tax rate is 50 percent. b. 30 percent, and the average tax rate is 36 percent. c. 50 percent, and the average tax rate is 40 percent. d. 50 percent, and the average tax rate is 36 percent.
Suppose a basket of goods and services has been selected to calculate the CPI and 2012 has been selected as the base year. In 2012, the basket's cost was $50; in 2014, the basket's cost was $52; and in 2016, the basket's cost was $55 . The value of the CPI in 2016 was
a. 90.9. b. 104.0. c. 105.0. d. 110.0.
If more foreign tourists visited the United States, this would
A. lower our merchandise trade imbalance. B. lower our overall trade imbalance. C. raise our merchandise trade imbalance. D. raise our overall trade imbalance.