With an interest rate of 6 percent, the present value of $100 next year is approximately
A) $106.
B) $100.
C) $94.
D) $92.
C
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Enacting a law controlling rents near a major university will increase the affordable housing for college students.
Answer the following statement true (T) or false (F)
Professor Weldon offers to pay his graduate students $20 an hour to grade essay papers. Six students accept the offer. When he raises the wage rate to $25, all ten of his students accept the offer. At least within the wage rate range $20 to $25, the students'
a. supply curve of labor is downward sloping b. demand curve for labor is downward sloping c. supply curve of labor is upward sloping d. demand curve for labor is downward sloping e. supply curve of labor is backward bending
A monopolist faces a demand curve given by P = 20 - Q and has total costs given by TC = Q2. By using a bit of calculus, you should be able to determine that the firm's marginal revenue is MR = 20 - 2Q and its marginal cost is MC = 2Q. If the firm's profitmaximizing output level is 5 and its profit maximizing price is $15, what are its monopoly profits at this price and quantity?
a. $25 b. $50 c. $75 d. $100
Refer to the above diagram. An expansionary fiscal policy can best be represented by a:
A. shift in the aggregate demand curve from AD3 to AD2. B. shift in the aggregate demand curve from AD1 to AD2. C. movement along the aggregate demand curve. D. shift in the aggregate demand curve from AD2 to AD1.