The economy usually operates at point ________?
Answer: T
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The present value of a given payment will be lower
a. if the payment comes sooner than expected b. the lower the prevailing interest rate c. the further in the future the payment is to be received d. the sooner the payment is to be received e. if the payment is made in cash
Compare changes in the price level for a recession resulting from a shift in aggregate demand to that of a recession resulting from a shift in short run aggregate supply
Finding the occupation or business activity in which you are relatively more productive helps you earn more money than otherwise would be the case. This reflects the
A. Principle of compound interest. B. Law of diversification. C. Law of large numbers. D. Law of comparative advantage
Answer the question on the basis of the following information. Assume that if the interest rate that businesses must pay to borrow funds were 20 percent, it would be unprofitable for businesses to invest in new machinery and equipment, so investment
would be zero. But if the interest rate were 16 percent, businesses would find it profitable to invest $10 billion. If the interest rate were 12 percent, $20 billion would be invested. Assume that total investment continues to increase by $10 billion for each successive 4 percentage point decline in the interest rate. Refer to the information. Which of the following correctly expresses the indicated relationship as an equation? A. i = 20 - 4I. B. i = 20 - .4I. C. i = 24 - .4I. D. i = 20 - 10I.