Which of the following is the most liquid?
A) certificate of deposit
B) cash
C) checkable and debitable account
D) stocks and bonds
B
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Suppose that the following table represents all of the possible investments in the economy. If the nominal interest rate is six percent, what is the total amount of investment in the economy? (Note: The Returns are for one period later.)
Investment Cost Returns A $100 $105 B 300 321 C 200 216 D 50 55 E 400 416
In the table above, if the wage rate is $8.00 per hour, the profit-maximizing number of workers is
A) 1. B) 2. C) 4. D) 5.
Explain the optimal strategy that a price discriminating firm would use when pricing in markets with different elasticities
What will be an ideal response?
If the economy experiences an unanticipated demand shock and households and firms have rational expectations, there is
A) no trade-off between unemployment and inflation in either the short run or the long run. B) a trade-off between unemployment and inflation in the long run, but not in the short run. C) a trade-off between unemployment and inflation in the short run, but not in the long run. D) a trade-off between unemployment and inflation in both the short run and the long run.