Suppose you inherit an orange orchard and it generates an annual return of $16,000 . You want to sell it. The interest rate is 8 percent. What should you expect to receive for it?
a. $1,280
b. $2,400
c. 200,000
d. 192,000
e. not enough information is given
C
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The aggregate demand for home input can be written as a function of: I. Real exchange rate. II. Government spending. III. Disposable income
A) I only B) III only C) I and III D) II and III E) I, II, and III
Everything else held constant, an increase in net taxes will cause the IS curve to shift to the ________ and aggregate demand will ________
A) right; increase B) right; decrease C) left; increase D) left; decrease
The Keynesian revolution was based on the assumption of price and wage ________ and thus the need for an activist ________ policy
A) flexibility, monetary B) flexibility, fiscal C) stickiness, monetary D) stickiness, fiscal
Economies of scale commonly arise because of coordination problems
a. True b. False Indicate whether the statement is true or false