A one-year Treasury bill that sells for $952.38 and has a face value of $1,000 has an annual yield of
A) 10 percent.
B) 8 percent.
C) 6 percent.
D) 5 percent.
D
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. B; C C. B; A D. D; B
Two university graduates, Bill and Steve, worked for an advertising agency at an annual salary of $40,000 each for 3 years after they graduated. Then, they decided to quit their jobs and start a partnership that designs and builds Web sites
They rented an office for $12,000 a year and bought capital for $30,000. To pay for the equipment, Bill and Steve borrowed money from a bank at an annual interest rate of 6 percent. During their first year of operation, the partners' total revenue was $100,000. The market value of their capital at the end of the year was $20,000. If Bill and Steve do not design Web pages, their best alternatives are to return to their previous job. a) What is the firm's economic depreciation? b) What are the partnership's costs? c) What is the firm's economic profit in the first year of operation?
[NeedAttention]
Exhibit 30-2
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If the marginal propensity to consume (MPC) decreases, then
A) the marginal propensity to save (MPS) decreases. B) the multiplier decreases. C) the multiplier increases. D) MPC + MPS is less than 1.