What is a present value?
What will be an ideal response?
A present value is the amount of money that, if invested today, will grow to equal a given future amount when the interest that it earns is taken into account.
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“The hotter it gets, the more water people drink.” This statement implies that the relationship between temperature and water consumption must have a
A. negative slope. B. positive slope. C. slope always equal to one. D. slope always equal to 45 degrees.
A potential entrant knows that it faces a (inverse) residual demand curve given by P = 50 ? 4Q. While the entrant does not know the inverse market demand, it does know that the incumbent committed to producing 150 units. Using this information, which of the following equations best summarizes the inverse market demand curve?
A. P = 200 ? Q B. P = 200 ? 4Q C. P = 150 ? 4Q D. None of the statements are correct.
John Maynard Keynes attacked the classical economic theory in his book The General Theory of Employment, Interest and Money, published in 1936. Summarize Keynes’ criticisms and explain why the timing of the book is so significant.
What will be an ideal response?
There have been __________ recessions since World War II that have lasted over one year.
A. one B. two C. three D. four