The value of a loan of $50,000 after a year at 2 percent interest is:

A. $1,000.
B. $52,000.
C. $49,000.
D. None of these is true.


D. None of these is true.

Economics

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We have worked a lot with homothetic production technologies. Suppose instead that a production process that uses capital and labor is quasilinear in capital and that capital is fixed in the short run. Then, assuming the firm currently profit maximizes at a given wage and rental rate, the short and long run slices of the production frontier are identical.

Answer the following statement true (T) or false (F)

Economics

If the nominal exchange rate between the American dollar and the Canadian dollar is 0.89 Canadian dollars per American dollar, how many American dollars are required to buy a product that costs 2.5 Canadian dollars?

A) $1.32 B) $2.23 C) $2.75 D) $2.81

Economics

The fact that developed countries have strong, widely attended university systems indicates that

(a) university expansion should be a development priority. (b) universities teach skills used on the job. (c) developing countries place too much stress on agriculture. (d) none of the above.

Economics

If you are living in a period of continued high inflation on a fixed income, the cost of the goods and services you buy ____ and your nominal income ____

a. decreases, decreases b. increases, increases c. decreases, remains the same d. increases, remains the same

Economics