Bob deposits $100 in a bank account that pays an annual interest rate of 5 percent. A year later, Bob withdraws his $105 . If deflation was 7 percent during the year the money was deposited, then Bob's purchasing power has increased by 12 percent
a. True
b. False
Indicate whether the statement is true or false
True
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As the manager of good A, which of the following would be of greatest concern (based on the regression results above)?
A) None of the factors below would be of concern. B) an impending recession C) pressure on you by your salespersons to lower the price so that they can boost their sales D) a price reduction by the makers of good B
The Russian government wants to reduce the consumption of vodka. A one hundred rouble tax on each bottle purchased may reduce the consumption of vodka under which circumstance(s)?
A) Vodka is an inferior good. B) Vodka is a normal good. C) Vodka is an inferior good and the taxes collected from this tax are rebated to consumers. D) Vodka is a normal good and the taxes collected from this tax are rebated to consumers. E) both B and C
Suppose the long-run aggregate supply curve shifts to the right as a consequence of the discovery of more efficient production technologies. Given unchanged aggregate expenditure, this implies a rise in long-run equilibrium output and a decline in the equilibrium price level
a. True b. False Indicate whether the statement is true or false
One of the two criteria for a resource to be considered capital is that it must:
A) occur naturally. B) be part of a factory or building. C) be a skill or talent possessed by a person. D) be possible to use it to produce other goods and services.