Describe the differences between the growth rates of real personal consumption and real gross private investment in the United States
What will be an ideal response?
The growth rate of real personal consumption in the United States has been relatively stable, no matter if the economy was in a recession or an expansion. The growth rate of real gross private investment, on the other hand, have been quite volatile over time, with the volatility becoming more extreme during recessions.
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Kevin deposits a certain sum in a bank at an annual compounded rate of interest for two years. Interest in the second year will be calculated on:
A) the principal amount only. B) the amount in the account after one year. C) the sum of the principal amount and the amount in the account after one year. D) the difference in the principal amount and the amount in the account after one year.
National banks are chartered by the
A) Office of the Comptroller of the Currency. B) Office of Bank Supervision. C) Securities and Exchange Commission. D) Office of Management and the Budget.
Tom is going to quit his job to pursue his PhD in economics, which will take him 6 years to complete. He currently makes $55,000 per year as a high school teacher
While going to school, he will receive a stipend of $24,000 per year plus $6,000 per year to help cover food and rent. His living expenses are the same regardless of what he does. What is Tom's opportunity cost of pursuing his PhD? A) $150,000 B) $180,000 C) $186,000 D) $330,000
The point elasticity is a measure of the sensitivity of consumers to a large price change - a range from one price to another
a. True b. False Indicate whether the statement is true or false