If the interest rate is 5 percent per year and you borrow $100 for two years, at the end of the second year you must pay back
A) $93.73.
B) $103.00.
C) $106.09.
D) $110.25.
Answer: C
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Gross domestic product (GDP) does not include:
a. used goods sold in the current time period. b. foreign produced goods. c. intermediate as well as final goods. d. None of these would be included.
An average tax rate of 1% on the poor and 20% on the rich would be
A. progressive. B. proportional. C. regressive.
The Federal Reserve cannot target both the money supply and the interest rate because it does not control
A) bank reserves. B) money demand. C) the discount rate. D) open market operations.
A nation's average annual real GDP growth rate is 2.5%. Based on the rule of 70 the approximate number of years that it would take for this nation's real GDP to double is:
A. 175 years B. 40 years C. 28 years D. 17.5 years