Corporations account for a ____ proportion of U.S. firms and a ____ proportion of sales by U.S. firms
a. small; small
b. small; large
c. large; small
d. large; large
b
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Consider an economy where the growth rate of real GDP is 6% and the annual rate of inflation is 2%. If the quantity theory of money holds, the growth rate of money supply in the economy will be:
A) 6%. B) 2%. C) 8%. D) 4%.
Suppose you have $400 to invest at a nominal interest rate of 7 percent, and the investment's term to maturity is 1 year. If the inflation rate is 2 percent, then the real return on your investment is approximately
A) $8. B) $20. C) $28. D) $36.
As the variety of goods and services increases, barter becomes:
a. easier because the chance of there being a double coincidence of wants increases. b. harder because the chance of there being a double coincidence of wants increases. c. easier because the chance of there being a double coincidence of wants decreases. d. harder because the chance of there being a double coincidence of wants decreases. e. easier because people have more options to choose from.
The sensitivity of one economic variable to changes in another variable is known as
a. the variability coefficient b. elasticity c. the sensitivity coefficient d. the cross-variability coefficient e. the law of demand