You could borrow $2,000 today from Bank A and repay the loan, with interest, by paying Bank A $2,125 one year from today. Or, you could borrow X dollars today from Bank B and repay the loan, with interest, by paying Bank B $2,200 two years from today. In order for the same interest rate to apply to the two loans, X =
a. $1,853.55.
b. $1,898.70.
c. $1,948.79.
d. $2,012.22.
c
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The Keynesian view that demand could fall short of production is more likely to hold true if
a) wages and prices are fully flexible b) prices, but not wages, are full flexible c) wages and prices are not fully flexible d) wages, but not prices, are fully flexible
Being a price taker, a perfectly competitive firm cannot receive a producer surplus in the short run
Indicate whether the statement is true or false
A general principle of regulation is:
A. the need to reduce regulations over time. B. set as few bad precedents as possible. C. do not offset the moral hazard problem. D. let banks fail regardless of the effect on the economy.
Public choice economics studies:
A. what individuals choose for themselves. B. how individuals are affected by advertising. C. public sector decision making. D. None of these