Which of the following would cause an increase in the demand for U.S. dollars?
a. an interest rate cut in the United States
b. an interest rate cut in Europe
c. an interest rate increase in Europe
d. a recession in Europe
b
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If the net present value is exactly equal to zero, the present value of the investment's stream of future operating profits is ________ the present value of its cost.
A) exactly double B) greater than C) equal to D) less than
What is the amount of money a person has left of his or her income after taxes called?
(A) Disposable personal income (B) National income (C) Personal income (D) Aggregate income
Suppose you read in the paper that the Federal Reserve plans to expand the money supply. The Fed is most likely to do this by
A. selling government bonds to the public. B. purchasing government bonds from the public. C. buying newly issued government bonds directly from the government itself. D. printing more currency and distributing it.
Assume firms break even in an industry. New firms ________ attracted to the industry and current ones ________ exiting it.
A. are not; are not B. are; are C. are not; are D. are; are not