Which of the following sequence of events follows a decrease in the discount rate?
A. r? ? I? ? AE? ? Y?
B. r? ? I? ? AE? ? Y?
C. r? ? I? ? AE? ? Y?
D. r? ? I? ? AE? ? Y?
Answer: D
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The question "Should economics majors or sociology majors earn more after they graduate?" is an example of a ________ question
A) what B) how C) for whom D) where E) why
In general, economists place all factors of production into which three categories?
A. Land, labor, and capital B. Technology, land, and capital C. Land, labor, and technology D. Technology, labor, and capital
What happens to the real interest rate?
a. It equalizes at 4 percent due to capital movements between the two countries.
b. It equalizes at 5 percent due to capital movements between the two countries.
c. The two interest rates converge at 5 percent.
d. The two interest rates converge at 3 percent.
Julia invested $3,000 at an annual interest rate of 5 percent. From last year to this year, there has been a 4 percent inflation rate. After a year, the purchasing power of her investment _____.
(A) Is 4 percent (B) Is 5 percent (C) Rose by 1 percent (D) Fell by 1 percent