A cheerleader-turned-pop-vocalist is offered a choice by her producer of either a lump sum of $20 million for all future work or a stipend of $1 million per year, payable to her and her heirs forever. She should choose the $1 million
a. no matter what the interest rate is
b. if the interest rate is greater than 20 percent
c. if the interest rate is less than 20 percent
d. if the interest rate is greater than 5 percent
e. if the interest rate is less than 5 percent
E
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In a certain economy, the components of aggregate spending are given by:C = 60 + 0.6(Y - T) - 1,000rI = 200 - 1,000rG = 200NX = 50T = 100Given the information about the economy above, what is the short-run equilibrium output if the real interest rate is 6 percent?
A. 825 B. 450 C. 925 D. 330
If everyone expects prices to fall but they do not, then
a. nothing happens. b. the IS curve shifts to the left and the AD curve shifts to the right. c. both IS and AD shift to the right. d. both IS and AD shift to the left. e. the IS curve shifts to the right, the AD curve shifts to the left.
The higher the rate of inflation in Cuba, the greater the probability that Cuban residents will substitute U.S. currency for Cuban currency
a. True b. False Indicate whether the statement is true or false
Who believed that people had transactional, precautionary, and speculative motives for holding money?
A. John Maynard Keynes and the classical economists B. Neither John Maynard Keynes nor the classical economists C. The classical economists, but not John Maynard Keynes D. John Maynard Keynes, but not the classical economists