Economic profit equals
A) accounting profit plus the cost of capital.
B) accounting profit plus the opportunity cost of labor.
C) accounting profit minus the cost of capital.
D) accounting profits divided by the cost of capital.
C
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In the United States at the end of 2012, the total money supply, M1, amounted to approximately
A) 16 percent of that year's GNP. B) 20 percent of that year's GNP. C) 30 percent of that year's GNP. D) 40 percent of that year's GNP. E) 50 percent of that year's GNP.
A rational individual would rather receive $1,000 today than receive $1,100 in one year if the applicable nominal interest rate was 12%
a. True b. False Indicate whether the statement is true or false
The average of the bilateral rate changes for a nation, weighted by the importance of the trading partner, is know as
A) the real exchange rate B) the nominal exchange rate C) the effective exchange rate D) the direct exchange rate
In an economy operating under flexible exchange rates, explain why the IS curve is downward sloping
What will be an ideal response?