A perpetuity that pays $250 per year at an interest rate of 4% would have a market price equal to
A) $6,250.
B) $25,000.
C) $2,500.
D) $62,500.
A
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Japan is generally considered an economy closed to foreign trade
a. True b. False
In a closed economy, if Y is 10,000, T is 1,000, G is 3,000, and C is 5,000, then
a. the government has a budget surplus and investment is 1,000 b. the government has a budget surplus and investment is 2,000 c. the government has a budget deficit and investment is 1,000 d. the government has a budget deficit and investment is 2,000
If you were to use an Aggregate Supply - Aggregate Demand diagram to model nondiscretionary and discretionary fiscal policy in reaction to a positive aggregate demand shock, you would seethe aggregate demand curve move
A. to the right, back toward its pre-shock position as a result of these policies. B. to the left as a result of the shock. C. back toward its pre-shock position as a result of these policies. D. to the right as a result of the shock.
United States exports, international tourism in the United States, and foreign capital inflow into the United States all give rise to:
A. Depreciation of the U.S. dollar B. A supply of foreign currencies to the United States C. A demand for foreign currencies in the United States D. Decreased foreign exchange reserves in the United States