If the annual interest rate is 0 percent, the present value of receiving $210 in the next year is:
A. $200.
B. $201.
C. $221.
D. $210.
Answer: D
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Use the following diagram to answer the next question.
The most likely cause for a shift in the production possibilities frontier from AB to CD is
A. the use of the economy's resources in a less efficient way. B. an increase in government purchase of the economy's output. C. an increase in the quantity and quality of labor resources. D. an increase in the spending of business and consumers.
The Sherman Act makes it illegal to
A) increase market share. B) merge firms in the same industry. C) attempt to monopolize an industry. D) price below competitors.
In a fractional-reserve banking system with no excess reserves and no currency holdings, if the central bank buys $100 million worth of bonds,
a. reserves and the money supply increase by less than $100 million. b. reserves increase by $100 million and the money supply increases by $100 million. c. reserves increase by $100 million and the money supply increases by more than $100 million. d. both reserves and the money supply increase by more than $100 million.
An increase in personal income taxes will cause a(n) ________.
A. decrease (or shift left) in aggregate demand B. decrease in the quantity of real output demanded (or movement up along AD) C. increase (or shift right) in aggregate demand D. increase in the quantity of real output demanded (or movement down along AD)