What is the monthly interest rate if you are asked to convert a 12 percent annual rate to a monthly rate (calculate to 4 decimal places)?
What will be an ideal response?
It is not as simple as dividing 12 percent by 12 and thus obtaining an answer of 1.000 percent. The monthly rate, im, can be determined by using the following formula: (1 + im)12= (1.12) which we can manipulate to (1 + im) = (1.12)1/12 which equals 1.0095. Therefore the monthly interest rate is 0.95%.
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In Figure 3-7 above, if natural real GDP = $2500, AP = $250, and the change in "a" = change in I = change in NX = 0, the tax cut required to achieve then natural real GDP is
A) $312.50. B) $250.00. C) $500.00. D) none of the above.
Refer to the graph shown. If this monopolist charges a price of $8 for its product, it:
A. maximizes profit. B. incurs losses. C. can increase profits by increasing output. D. earns zero economic profits.
Modern mixed economies
A. generally alter the outcome of market processes in a manner that is believed to be in the social interest. B. attempt to redistribute income to make the distribution of income more equitable. C. rely on the government as well as the market to effect the distribution of goods and services. D. undertake all of the actions listed.
If product demand increases and product price increases
A. the marginal revenue product curve will shift to the right. B. the firm will move down the marginal revenue product curve and hire more units of the input. C. the marginal revenue product curve will shift to the left. D. the firm will move up the marginal revenue product curve and hire fewer units of the input.