According to the above figure, at an income level of Y1,
A. the average propensity to save is greater than one.
B. the marginal propensity to save is falling.
C. the economy dissaves an amount equal to BD.
D. the economy saves an amount equal to BD.
Answer: C
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Using the rule of 70, a sustained 3 percent per year real GDP growth rate will
A) last for 70 years. B) double the current level of real GDP in about 23 years. C) double the current level of real GDP in about 210 years. D) double the current level of real GDP in about 70 years. E) double the current level of real GDP in about 40 years.
Investors face the risk that the economy could go into another recession. This risk is:
A. Idiosyncratic B. Diversifiable C. Systemic D. Time preference
If the interest rate is 12%, the current market value of $1 to be delivered in one year is
A. $0.89. B. $0.95. C. $1.00. D. $1.15.
A share of stock is
A. a claim on the assets of the corporation that gives the purchaser an ownership right in the corporation. B. the share of profits distributed to stockholders. C. a promise to pay for the use of someone else's money. D. a promise to loan money to someone. E. a and b