Assuming r is the interest rate, to compute the present value of a dollar to be received a year from today, you
A) multiply the dollar by r.
B) divide the dollar by (1 - r).
C) multiply the dollar by (1 + r).
D) divide the dollar by (1 + r).
D
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Real GDP is the value of final goods and services produced in a year
A) expressed in the prices of that same year. B) during a recession. C) minus depreciation. D) expressed in the prices of a base year. E) minus the value of all the intermediate goods produced.
Which of the following changes shifts the AD curve up and to the right?
A) A rise in the nominal money supply B) An increase in income taxes C) An increase in the risk on nonmonetary assets D) A decrease in the future marginal productivity of capital
How did maintaining the gold standard deepen the severity of the Great Depression?
What will be an ideal response?
If the income elasticity of demand for a good is 0.5, then
a. it is a normal good, and its demand curve will shift to the left if buyers' incomes increase b. it is a normal good, and its demand curve will shift to the right if buyers' incomes increase c. it is an inferior good, and its demand curve will shift to the right if buyers' incomes increase d. it is an inferior good, and its demand curve will shift to the left if buyers' incomes increase e. there is insufficient information to determine whether the good is normal or inferior