A perfectly inelastic demand curve is represented by an upward-sloping straight line
a. True
b. False
Indicate whether the statement is true or false
False
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
Your accountant tells you that if you can continue to earn the current interest rate on your balance of $500 for ten years, you will have about $983.58 . If your accountant is correct, what is the current rate of interest?
a. 5 percent b. 6 percent c. 7 percent d. 8 percent
An increase in the money supply is likely to
A. lower interest rates. B. raise interest rates. C. decrease the quantity of money demanded.
A call option has a strike price of $80. If the underlying stock is selling for $83 on the expiration date, the intrinsic value of the call option is __________ per share
A) $163 B) $83 C) $3 D) $0