If a project costs $3,500 today and pays a return of $4,200 next year, what is the highest interest rate at which the project should be undertaken?
A) 7 percent B) 14 percent C) 20 percent D) 70 percent
C
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Which statement best describes the current account balance in the short run?
A) Monetary expansion lowers the current account balance. B) Monetary expansion keeps the current account balance the same. C) Fiscal expansion increases the current account balance. D) Fiscal expansion keeps the current account balance the same. E) Monetary expansion increases the current account balance.
Members of the European Exchange Rate Mechanism (ERM)
A) agreed to buy and sell gold at a fixed rate. B) promised to maintain the values of their currencies within a fixed range. C) attempted to maintain a fixed exchange rate against the dollar. D) all agreed to charge the same interest rate on central bank loans.
If the marginal benefits of increasing study time are less than the marginal costs, then
A. study time should be decreased. B. no conclusion about the relative merits of more or less study time is possible. C. there is too little study time. D. study time should be increased. E. study time should be decreased to zero.
An important contributor to rising U.S. health care costs in recent years is
A. less interest on the part of Americans to stay physically fit. B. an easing of standards at medical schools that has permitted unqualified people to become physicians. C. the aging of the population. D. the increasing proportion of the population that smokes.