Linda earns an income of $3,000 per month. She saves 10 percent and spends the remainder on food, lodging, and other expenses. So far, she has managed to save $20,000. What is her consumption per month?
What will be an ideal response?
$2,700
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Which of the following does not arise from price discrimination?
A) an increase in quantity sold B) an increase in profits C) an increase in consumer surplus D) an increase in producer surplus
Assume that the farmers know that their revenues would increase if each would take a certain amount of acreage out of production. An agreement to do so
A) would not be made because the farmers have no incentive to enter into it. B) would not be made because it would contradict the assumption that farmers are profit maximizers. C) probably would not be adhered to, if made, because it would be disadvantageous for the farmers as a group. D) probably would not last, if made, because each farmer would have an incentive to break it.
How will an increase in the world price of crude oil influence the economy of an oil-importing country such as the United States?
A. Aggregate supply will decrease, leading to a decrease in real GDP. B. Aggregate supply will increase, leading to an increase in real GDP. C. Aggregate supply will increase, leading to an increase in prices and smaller GDP. D. A change in the price of an imported good will not affect the domestic economy of an oil-importing country.
If nominal GDP is 8,100 billion florins and the money supply is 900 billion florins, the velocity of circulation is
A. 900.0. B. 90.0. C. 81.0. D. 9.0. E. 8.1.