Isabel purchases a $1,000 face value one-year Treasury bill for $934.58, and the next day investors decide they will only buy one-year Treasury bills if they receive an interest rate of 9%
If Isabel decides to sell her Treasury bill to another investor the day after she purchased it, she will A) receive a capital gain of $28.04.
B) receive a capital gain of $7.76.
C) suffer a capital loss of $18.69.
D) suffer a capital loss of $17.15.
D
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Assuming the inner curve is the United States' current production possibilities frontier, which of the following points would eventually lead to the greatest level of economic growth?
A. Point J
B. Point N
C. Point K
D. Point P
The marginal propensity to consume (MPC) is equal to
A) 1 + MPS. B) 1 - MPS. C) MPS + 1. D) MPS - 1.
Using the above figure, at which price is there neither excess quantity demanded nor excess quantity supplied?
A) P1 B) P2 C) P3 D) none of these
The _____________ tells us when the government raises taxes, it gets more revenue per unit sold.
A. quantity effect B. income effect C. price effect D. substitution effect