The present value of a stream of future revenues varies ________ with the future revenues and ________ with the interest rate
A) inversely; inversely
B) directly; directly
C) inversely; directly
D) directly; inversely
D
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Human capital ________ as you work. As a result, the ________ of goods and services ________
A) does not change; quality; does not change. B) decreases; quantity; decreases. C) improves; quality; does not change. D) declines; quality; increases. E) increases; quantity; increases.
If the Federal Reserve chooses to fight high inflation with contractionary monetary policy and firms and consumers expect this policy to reduce inflation, which of the following would you expect to see?
A) a downward shift of the short-run Phillips curve B) a decrease in the long-run aggregate supply curve C) an increase in inflationary expectations D) a reduction in the unemployment rate
Innovation is the process of turning an invention into a marketable product
a. True b. False
The price elasticity of demand is
a. irrelevant to the determination of prices, incomes, and interest rates b. indeterminate in most cases c. the percentage change in price divided by the percentage change in quantity demanded d. the percentage change in price with respect to the percentage change in quantity supplied e. the percentage change in quantity demanded divided by the percentage change in price