If the interest rate is 4 percent per year and you borrow $100 for one year, at the end of the year you must pay back
A) $96.
B) $100.
C) $104.
D) $4.
Answer: C
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Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower
Dr. Khan starts his own dental practice after quitting his $150,000 job at The Mall Dental Clinic. His revenues for the first year are $500,000
He paid $90,000 in rent for the dental office, $60,000 for his office manager's salary, $24,000 for the dental hygienist, $150,000 for insurance, and $6,000 for other miscellaneous costs. The normal profit from running his business is $20,000. Which of the following statements is true? A) His accounting profit is $350,000. B) His economic profit is $150,000. C) His economic profit is zero. D) His accounting profit is zero. E) None of the above answers is correct.
If the quantity of a good that buyers are willing to buy rises sharply when the price falls, this illustrates what principle?
A. Ceteris paribus B. Market equilibrium C. The law of supply D. The law of demand
Refer to the above table. There is an excess quantity supplied of 2,000 units at a price of
A. $450. B. $500. C. $600. D. $700.