(Advanced analysis) Alex wants to have $800 saved up at the end of 10 years. If he deposits $500 today, what annually compounded rate of interest would he have to earn to reach his goal?
A. 4.8 percent.
B. 5.2 percent.
C. 5.7 percent.
D. 6.2 percent.
A. 4.8 percent.
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An important characteristic of the modern payments system has been the rapidly increasing use of
A) checks and decreasing use of currency. B) electronic fund transfers. C) commodity monies. D) fiat money.
Pretty Polly produces dresses for little girls. At its current advertising level, Pretty Polly's marginal cost of advertising is $500,000 and their marginal benefit is $750,000. Which of the following is true?
A) If the firm increases the amount of advertising, its net profits will decrease. B) The firm is currently maximizing its net profit. C) The firm should increase the amount of advertising to increase its net profit. D) The firm should reduce the amount of advertising to increase its net profit.
Assume that foreign capital flows into a nation rise due to expected increases in stock market appreciation. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and reserves account in the context of the Three-Sector-Model? a. The quantity of real loanable funds per time period rises
and reserves account becomes more negative (or less positive). b. The quantity of real loanable funds per time period falls and reserves account remains the same. c. The quantity of real loanable funds per time period and reserves account remain the same. d. The quantity of real loanable funds per time period rises and reserves account remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
If the percentage change in price is 2 and the percentage change in quantity supplied is 10, supply is:
A. unaffected by price changes. B. inelastic. C. unit elastic. D. elastic.