Your bank account pays 3% interest per year. You loan a friend $100 for one year at zero interest. Assuming the loan is paid on time the opportunity cost of the loan is
A. $0.
B. $103.
C. $3.
D. $100.
Answer: C
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A factor determining the supply of U.S. dollars in the foreign exchange market is the
A) expected future exchange rate. B) expected future interest rate in the United States. C) U.S. supply of exports. D) expected future interest rate in foreign countries.
For a renter, the income effect of an increase in apartment rents will
a. have a greater effect than the income effect of an increase in the price of chewing gum b. have no impact on the demand curve for apartments, because everything except price is assumed constant c. have less of an effect than the income effect of an increase in the price of chewing gum d. be almost negligible, because housing is a necessity e. occur only when income increases
The official dating of recessions in the United States is the responsibility of the:
a. Bureau of Labor Statistics (BLS). b. Internal Revenue Service (IRS). c. Federal Reserve. d. Congress. e. National Bureau of Economic Research (NBER).
Some politicians argue that reducing the corporate income tax will increase business investment spending
a. True b. False Indicate whether the statement is true or false