A physical book that sells new for $100 will rent for around
A. $100.
B. $75.
C. $25.
D. $50.
Answer: D
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In the short-run, real GDP can be greater than or less than potential GDP because in the short run the money wage rate is fixed
Indicate whether the statement is true or false
When aid is in the form of free or remarkably reduced priced goods, it is known as:
A. goods in-kind donations. B. freebies. C. direct donations. D. consumable donations.
The least costly way to produce a given level of output is indicated by the point of tangency between a budget line and the production indifference curve corresponding to that level of output
a. True b. False Indicate whether the statement is true or false
Assume that the central bank lowers the discount to increase the nation's monetary base. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the reserve-related (central bank) transactions and monetary base in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium
a. The reserve-related (central bank) transactions become more positive (or less negative) and monetary base rises. b. The reserve-related (central bank) transactions become more negative (or less positive) and monetary base falls. c. The reserve-related (central bank) transactions become more positive (or less negative) and monetary base remains the same. d. The reserve-related (central bank) transactions and monetary base remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.