Which of the following statements best reflects the concept of present value?
A. "The savings bond I bought five years ago is now worth $1,000."
B. "My $100 savings bond will be worth $200 in 10 years."
C. "You owe me $500, due at the end of the year, but I will reduce your debt to $450 if you
pay me now."
D. "The $5,000 in my savings account is worth less today than five years ago because of
inflation."
C. "You owe me $500, due at the end of the year, but I will reduce your debt to $450 if you
pay me now."
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The process of adjustment to a new long-run equilibrium in a perfectly competitive industry is not complete if
A. other firms want to enter the industry. B. all firms are at the minimum average cost. C. all firms receive zero economic profit. D. no firms want to exit the industry.
The U.S. money supply measure that consists of currency plus travelers checks and check able deposits is referred to as
a. M1. b. M2. c. M3. d. M1 + M2.
Tying can be thought of as a form of price discrimination
a. True b. False Indicate whether the statement is true or false
Investment spending is insensitive to changes in the interest rate and the SRAS curve is upward sloping. According to a monetarist, an increase in the money supply will __________ Real GDP. According to a Keynesian, an increase in the money supply will __________ Real GDP
A) raise; not change B) not change; raise C) lower; lower D) raise; lower E) none of the above