Joshua has decided that he will only purchase a one-year Treasury bill with a face value of $500,000 if he receives an interest rate of 6.25%. How much will Joshua end up paying for this Treasury bill?
A) $439,338
B) $468,750
C) $470,588
D) $531,250
C
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The figure above shows the marginal social cost curve of generating electricity and the marginal private cost curve. The marginal cost borne by producers when 200 billion kilowatt hours are produced is
A) 0¢ per kilowatt. B) 10¢ per kilowatt. C) 20¢ per kilowatt. D) 15¢ per kilowatt. E) 5¢ per kilowatt.
Which of the following would most likely move the economy into a recession in the short term?
A. The central bank printing less money than was expected. B. Invention of a new product that most consumers want to buy. C. Innovations in management that enhance worker productivity. D. Congress passing a reduction in personal income tax rates.
A stock index is
a. an average of a group of stock prices. b. an average of a group of stock yields. c. a measure of the risk relative to the profitability of corporations. d. a report in a newspaper or other media outlet on the price of the stock and earnings of the corporation that issued the stock.
Exhibit 20-6 Money, investment and product markets
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In Exhibit 20-6, if the Fed believes the economy is at AD3, how might it engineer a decline in the price level?
A. By decreasing the money supply, the interest rate falls, investment rises, and aggregate demand falls, causing the price level to fall. B. By decreasing the money supply, the interest rate rises, investment rises, and aggregate demand rises, causing the price level to fall. C. By decreasing the money supply, the interest rate rises, investment falls, and aggregate demand falls, causing the price level to fall. D. By increasing the money supply, the interest rate rises, investment rises, and aggregate demand falls, causing the price level to fall.