Suppose there is no inflation, and the current interest rate is 4% per year. Erin plans to open a savings account and deposit $100 annually for the next 5 years. She plans to leave this money untouched for 10 more years. At the end of the period, the balance of her savings account will be
A) 2500(1.045 - 1).
B) 2000(1.0415-1).
C) 2000(1.045 - 1)(1.04)10.
D) 2500(1.045 - 1)(1.04)10.
D
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Use the following graph showing cost curves for a perfectly competitive firm to answer the next question.
What is the lowest price at which the firm will start producing output in the short run?
A. $0.90 B. $1.05 C. $0.60 D. $1.25
Describe the role of uncertainty at the beginning of and in the unfolding of a financial crisis
What will be an ideal response?
Suppose a basket of goods and services has been selected to calculate the CPI and 2012 has been chosen as the base year. In 2012, the basket's cost was $80.00; in 2013, the basket's cost was $84; and in 2014, the basket's cost was $87.60 . The value of the CPI was
a. 100 in 2012. b. 105 in 2013. c. 109.5 in 2014. d. All of the above are correct.
If average labor productivity increases, real GDP per person:
A. increases. B. may increase or decrease depending on the change in the share of population employed. C. remains constant. D. decreases.