Which is larger: the present value of $1 two years from now or the present value of $1 one year from now? Explain
What will be an ideal response?
The present value of $1 one year from now is greater than the present value of $1 two years from now. At the same interest rate, a individual would have to put a greater amount aside if he wanted to end up with $1 after one year than he would have to if he put the money aside for two years.
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Fiscal policy designed to increase aggregate demand during economic downturns and decrease aggregate demand during economic booms is called
a. business cycle fiscal policy. b. new classical fiscal policy. c. supply-side fiscal policy. d. countercyclical fiscal policy.
A good that is nonrival in consumption and excludable is a ______ good.
a. private b. public c. common d. club
Which of the following defines monopoly?
A. Clayton Act B. Federal Trade Commission Act C. Sherman Act D. none of these
When import restrictions are placed on a good, and as a result the price of the good increases, the demand curve for that good will
A) shift rightward. B) shift leftward. C) become steeper. D) be unaffected.