At which interest rate is the present value of $95.40 one year from today equal to $90 today?
a. 4 percent
b. 5 percent
c. 6 percent
d. 7 percent
c
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A good that is rival and excludable is a ________
Fill in the blank(s) with correct word
If a firm has excess capacity, it
A) produces less than its efficient scale. B) should advertise to maximize profits. C) should decrease its markup to increase its profit. D) is a perfectly competitive firm. E) must face a horizontal demand curve.
If the government purchases multiplier equals 2, and real GDP is $14 trillion with potential real GDP $14.5 trillion, then government purchases would need to increase by ________ to restore the economy to potential real GDP
A) $7.25 trillion B) $1 trillion C) $500 billion D) $250 billion
The success of the gold standard in the period before World War I is attributed partly to the high degree of tranquility in global markets.
Answer the following statement true (T) or false (F)