Value of a loan amount X with interest r after one period equals:
A. (X * 1)/(X * r)
B. X * (1 + r)
C. X/(1 + r)
D. All of these are true.
B. X * (1 + r)
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
Cutting taxes
A) will raise disposable income and lower spending. B) will lower disposable income and raise spending. C) will raise disposable income and raise spending. D) will lower disposable income and lower spending.
Assume that you have just returned to the United States from a summer vacation in Russia, where you exchanged American dollars for Russian rubles. Your economic actions can be said to have:
a. increased the supply of American dollars in Russia. b. decreased the supply of Russian rubles in America. c. decreased the supply of American dollars in Russia. d. increased the demand for American dollars in America. e. increased the supply of Russian rubles in Russia.
Which of the following is an expected result of a network externality?
a. An increase in deadweight loss b. An increase in social costs c. A positive spillover effect d. An increase in private costs