Refer to Figure 15-13. In the figure above, if the economy in Year 1 is at point A and is expected in Year 2 to be at point B, then the appropriate monetary policy by the Federal Reserve would be to
A) lower income taxes. B) raise interest rates.
C) raise income taxes. D) lower interest rates.
B
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With no international trade, a country ________ consume at a point outside of its PPF; with international trade, a country ________ consume at a point outside of its PPF
A) cannot; can B) can; can C) can; cannot D) cannot; cannot E) None of the above answers is correct because the presence or absence of international trade has nothing to do with where a country consumes in comparison to its PPF.
Samantha has been working for a law firm and earning an annual salary of $90,000 . She decides to open her own practice. Her annual expenses will include $15,000 for office rent, $3,000 for equipment rental, $1,000 for supplies, $1,200 for utilities, and a $35,000 salary for a secretary/bookkeeper. Samantha will cover her start-up expenses by cashing in a $20,000 certificate of deposit on which
she was earning annual interest of $1,000 . Assuming that there are no additional expenses, Samantha's annual implicit costs will equal a. $55,200 b. $221,400 c. $91,000 d. $146,200 e. $145,200
Credit risk refers to the probability that the issuer of a bond will fail to pay some or all of the interest or principal
a. True b. False Indicate whether the statement is true or false
In Exhibit 1, what is the consumer surplus at a quantity of one unit when the price is $4?
a. $8
b. $7
c. $4
d. $3