If there are no interventions by finance ministers or control banks in the international market, then
A. the current account will be greater than the financial market.
B. the capital market will equal the current account.
C. the capital market will be greater than the current account.
D. the current account and the capital account must sum to zero.
Answer: D
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George purchased a $10,000 bond that pays a nominal interest rate of 8 percent per year. George's marginal income tax rate is 28 percent. Over the last year, inflation was 3 percent
Find George's before-tax real interest rate and his after-tax real interest rate.
On a production possibilities curve diagram, greater entrepreneurship:
a. causes the curve to shift outward. b. keeps the economy on the curve. c. prevents movement along the curve. d. keeps the economy at the corners of the curve.
An example of a government policy to increase physical capital formation is:
A. the construction of an interstate highway system. B. maintaining a well-functioning legal system. C. government support for basic research. D. the provision of publicly-funded education.
To the extent that brand names developed in monopolistic competition provide a benefit to the consumer, it is:
a. by allowing for a lower total cost. b. through their assurance that the firm will provide a quality product in order to preserve repeated transactions. c. by encouraging the entry of new competitors. d. by allowing the firm to engage in price discrimination.