Consider the indifference maps shown above. If X and Y are perfect substitutes, your indifference curves between them would look like those in
A) Figure A.
B) Figure B.
C) Figure C.
D) Figure D.
A
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Which of the following has a present value of $100?
a. $109.12 in two years when the interest rate is 4 percent b. $113.98 in two years when the interest rate is 6 percent c. $116.64 in two years when the interest rate is 8 percent d. $123.17 in two years when the interest rate is 10 percent
Assume that the federal funds rate is at its target, 2 percent, output is about 1 percent beneath potential, and inflation is roughly 1.5 percent. If the Taylor rule is accurate, the Fed's desired rate of inflation at this time would be:
A. 5 percent. B. 2.5 percent. C. 3.5 percent. D. 1 percent.
Which of the following would not be expected to increase labor productivity?
A. Technological advance. B. The acquisition of more education and training by the labor force. C. An increase in the size of the labor force. D. The realization of economies of scale.
Between the second quarter of 2006 and the first quarter of 2009, the value of housing wealth
A. increased by about $500 billion per quarter. B. increased by about $13 trillion per quarter. C. decreased by about $7 trillion per quarter. D. decreased by about $600 billion per quarter.