Answer the next question on the basis of the information in the following table. In the table, investment is in billions.(1) Interest Rate(2) Investment (billions of dollars)(3) Investment (billions of dollars)4%$100$8059070680607705086040Suppose the Fed reduces the interest rate from 6% to 4%. As a result of this decrease in the interest rate, using column (2) investment will ________.
A. decrease by $10 billion
B. decrease by $20 billion
C. increase by $20 billion
D. increase by $10 billion
Answer: C
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Increasing wage inequality results when international trade leads to ________ wages for workers in exporting industries and ________ wages for workers in importing industries.
A. lower; no change in B. lower; higher C. higher; higher D. higher; lower
Refer to the figure above. A change in the budget constraint from B1 to B2 indicates:
A) an increase in the price of sweaters. B) a decrease in the price of sweaters. C) an increase in the consumer's income. D) a decrease in the consumer's income.
All of the following are considered money in the United States EXCEPT:
A. credit cards. B. checking account balances. C. currency. D. travelers' checks.
Mike starts his own business after quitting his job in which he made $75,000. Expenses include $100,000 for wages and salaries, which includes a wage for the owner of $75,000, utilities of $5000, equipment of $50,000, and materials of $40,000. If
revenues are $200,000, his accounting and economic profits are respectively A) $80,000 and $5,000. B) -$70,000 and -$70,000. C) -$70,000 and $5,000. D) $5,000 and $5,000.