An economy that interacts with other economies is called:
A. an international economy.
B. a global economy.
C. an open economy.
D. a closed economy.
Answer: C
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A manufacturing firm is deciding whether to invest in a new printer that needs an initial investment of $150,000. This will increase cash flows in the first year by $80,000 and $75,000 in the second year. If the interest rate is 10% then the net present value of these cash flows is
a) $5,000 b) - $9,091 c) -$15,290 d) -$21,901
Which of the following statements is correct?
A) Arc elasticity of demand is the same as the slope of the demand curve. B) Arc elasticity of demand only applies to a nonlinear demand curve. C) Point elasticity of demand is measured at each point along a demand curve. D) Point elasticity of demand is measured between two adjacent points on a demand curve.
When there is a sudden decrease in the real interest rate in Canada, the Canadian dollar will depreciate
a. True b. False Indicate whether the statement is true or false
A decrease in the tax rate is more likely to increase the standard of living if the income effect of a change in the interest rate is
a. small and an increase in private saving tends to have a small impact on the capital stock. b. small and an increase in private saving tends to have a large impact on the capital stock. c. large and an increase in private saving tends to have a small impact on the capital stock. d. large and an increase in private saving tends to have a large impact on the capital stock.