Which of the following outstanding debts should Jillian pay off first?
A) A three year loan of $5,000 at 0 percent a year from her mom.
B) A $2,000 debt on a credit card charging 18 percent annually.
C) A home equity loan of $10,000, which has an effective rate of 6 percent after her tax advantages are taken into account.
D) A student loan of $40,000 with a fixed rate of 4 percent.
B) A $2,000 debt on a credit card charging 18 percent annually.
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Demonstrating how an economic variable changes from one year to the next is best illustrated by a
A) time-series graph. B) scatter diagram. C) Venn diagram. D) linear graph. E) cross-section graph.
In recent years unemployment rates in several European countries have been higher than unemployment rates in the United States. Many economists believe that European unemployment rates have been higher because
A) European firms hire many seasonal workers from other countries, and this tends to inflate unemployment rates in their countries. B) of the different methods used to measure unemployment. If similar methods were used, unemployment rates in Europe and the United States would be about the same. C) the size of the military is much larger in the United States and all military personnel are classified as employed. D) unemployment benefits are more generous in Europe than in the United States.
Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
Buyers' expenditures and sellers' revenues are always identical
a. True b. False Indicate whether the statement is true or false