Suppose your grandfather put $10,000 in the bank in 1965 at an annual interest rate of 7%. Using the Rule of 70, approximately how large should the bank balance be in 2015?
a. $50,000
b. $60,000
c. $80,000
d. $320,000
d
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Equilibrium price and quantity are determined by:
A. demand. B. both supply and demand. C. supply. D. government regulations.
If velocity remains constant, which of the following examples would cause inflation?
a. Money supply increases by 8 percent; real GDP increases by 6 percent. b. Money supply increases by 5 percent; real GDP increases by 5 percent. c. Money supply increases by 4 percent; real GDP increases by 7 percent. d. Money supply increases by 9 percent; real GDP increases by 10 percent.
Which is true?
a. Barter is an efficient way to conduct business b. Fiat money is currency backed by the nation's gold reserves c. the US dollar is backed by gold d. the Fed sets tax policy e. a Gold Standard means that a person with currency can easily convert the currency into gold
? Along the short-run aggregate supply curve (SRAS), an increase (rightward shift) in the aggregate demand curve will increase:
A. ?both the price level and real GDP. B. real GDP without raising the price level. C. the price level without affecting real GDP. D. ?the price level but reduce real GDP.