If the interest rate is 4 percent per year and you borrow $100 for one year, at the end of the year you must pay back
A. $100.
B. $104.
C. $96.
D. $4.
Answer: B
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A new car in the dealer's showroom had a sticker price of $35,900. Sally liked the car but decided she would pay no more than $32,000 for it, otherwise she would do without it. After haggling with the dealer, she purchased the car for $31,500
Did she gain any consumers surplus? If so, how much? If not, why not?
The primary incentive for economic agents to formulate expectations rationally is to
A) increase earnings. B) increase prices. C) reduce prices. D) ensure that all expectations are realized.
Suppose demand increases and supply decreases. Which of the following will happen?
What will be an ideal response?
The study of the decision-making process of government is the study of:
A. Keynesian economics. B. public choice theory. C. rational expectations theory. D. social economics.