Suppose you borrow $1,000 at 8% for 2 years. If the interest is compounded annually, how much money will you owe at the end of those 2 years?
A. $1,080.00
B. $1,160.00
C. $1,166.40
D. $1,345.60
C. $1,166.40
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Which type of graph is used to identify trends?
A) time-series B) scatter diagram C) cross-section D) None of the above answers is correct.
The purchasing power parity (PPP) method
a. calculates the cost of purchasing a specific bundle of goods and services in each country and uses this measure to convert the incomes of different countries to a common currency. b. calculates how much the general price level has increased within one specific country through time. c. calculates how much the average standard of living across all countries has changed through time. d. is used when one wants to compare dollar values from today with those from more than 100 years ago.
A policy of fiscal austerity could have difficulty lowering the debt-to-GDP ratio because it might:
A. lower both GDP growth and government revenue. B. lower potential output and government spending. C. raise potential output and government spending. D. raise both GDP and government revenue.
The political problems associated with fixing the CPI are that
A. benefits to the poor would rise. B. Social Security benefits would fall. C. personal income taxes would fall. D. Social Security taxes would rise.