A certain magazine offers its subscribers the opportunity to "Buy Now and Save." If at the time their subscription renewal is due they agree to pay for 2 years rather than 1, the renewal price will be $50 per year rather than the usual $60 per y
At what interest rate will the consumer, who is certain she will subscribe to the magazine for the next 2 years, decide to "Buy Now and Save"? A) any interest rate under 50 percent
B) any interest rate over 1.5 percent
C) any interest rate over 150 percent
D) any interest rate under 5 percent
E) She will always take this offer if she is absolutely certain to buy the magazine for another 2 years.
A
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The sale of financial assets, such as stocks and bonds, is ________.
A. not included in GDP, because they do not increase domestic production B. not included in GDP, because they do not increase domestic wealth C. included in GDP, because they increase domestic wealth D. included in GDP, because they raise domestic production
To draw your budget line between steak and lobster, all you need to know is the price of a steak and the price of a lobster
Indicate whether the statement is true or false
Which of the following is NOT one of the basic questions that an economic system attempts to answer?
A) How to eliminate choices? B) What to produce? C) How will goods and services be produced? D) For whom will goods and services be produced?
The __________ tells us when the government raises taxes, the higher tax rate causes fewer units to be sold.
A. quantity effect B. price effect C. government spending effect D. quality effect