At which interest rate is the present value of $360 three years from today equal to about $310 today?
a. 4.7 percent
b. 5.1 percent
c. 5.5 percent
d. 5.9 percent
b
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The amount of a tax paid by the buyers will be smaller the
A) more elastic the demand and the more inelastic the supply. B) more inelastic the demand and the more elastic the supply. C) more inelastic are both the supply and demand. D) more elastic are both the supply and demand.
Refer to Figure 12-9. At price P1, the firm would produce
A) Q1 units B) Q3 units. C) Q5 units. D) zero units.
In response to the deep economic downturn in the US in 2008 and 2009, the US
a. reduced taxes. b. increased government spending. c. increased the supply of money. d. All of the above are correct.
Which one of the following is NOT included in GDP?
A. You volunteer to organize a neighborhood watch group on your block. B. A mail-order firm constructs a new warehouse in Kansas as a central distribution facility. C. You pay your monthly apartment rent. D. The federal government pays a defense contractor to develop a new weapons system.