Which would you rather have? a) $100, 10 years from now at 4% interest, or b) $100, 4 years from now at 12% interest.
What will be an ideal response?
a) $67.56
b) $63.55
The present value of a) is greater than the present value of b).
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When demand elasticity is ____ in absolute value (or ____), an increase in price will result in a(n) ____ in total revenues
a. less than 1; elastic; increase b. more than 1; inelastic; decrease c. less than 1; elastic; decrease d. less than 1; inelastic; increase e. none of the above
For a perfectly competitive firm, marginal revenue is identical to marginal cost at every quantity
Indicate whether the statement is true or false
If the demand for money decreases, ceteris paribus, the LM curve would:
A) shift right. B) shift left. C) remain constant. D) slope more steeply.
If the supply of a good decreased, what would be the effect on the equilibrium price and quantity?
A. Price would increase, and quantity would decrease. B. Price would decrease, and quantity would decrease. C. Price would increase, and quantity would increase. D. Price would decrease, and quantity would increase.