An increase in the real interest rate will increase the
a. current market value of assets yielding income in the future.
b. size of the inflationary premium.
c. cost of current consumption goods relative to future consumption.
d. net present value of $100 to be received one year from now.
C
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Mrs. Wallace and Mrs. Jackson both signed up for 6 months (each incurred a $200 total payment required in advance, and nonrefundable) at the local workout club. Wallace enjoyed all 6 months
Jackson dropped out after three months due to other unexpected commitments. Which of the following is true? A) Wallace's sunk cost was zero. B) Jackson's sunk cost was $100. C) Jackson's sunk cost was $200, and so was Wallace's. D) Wallace's sunk cost was $100. E) None of the above.
If the quality of a good deteriorates while its price remains the same, then the value of a dollar
a. rises and the cost of living increases. b. rises and the cost of living decreases. c. falls and the cost of living increases. d. falls and the cost of living decreases.
List the four components of GDP
A budget deficit is the:
A. total amount of money that a government owes. B. amount of money a government spends beyond the net revenue it brings in. C. total amount of money that a government spends for discretionary policies. D. amount of net revenue a government brings in beyond what it spends.