A family's summer house on Cape Cod pays a return in the form of

A) interest rate.
B) capital gains.
C) the pleasure of vacations at the beach.
D) stock options.
E) capital gains and pleasure.


E

Economics

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Given a desired reserve ratio of 20 percent, a commercial bank that has received a new deposit of $100 can make additional loans of

A) $0. B) $20. C) $80. D) $120.

Economics

According to the quantity theory of money, money growth and inflation are

A) positively correlated. B) negatively correlated. C) independent, that is, not correlated. D) positively correlated if the inflation rate is positive and negatively correlated if the inflation rate is negative.

Economics

An increase in financial innovations such as increased network of ATM machines and the widespread acceptance of debit cards

A) will shift the demand for money to the right. B) will shift the demand for money to the left. C) increases the quantity of money people want to hold at each interest rate. D) decreases the quantity of money people want to hold at each interest rate.

Economics

Refer to Table 10.2. If the price of output is $1 per unit and we observe the firm hiring four workers, if the firm is maximizing profit, the wage rate must be between ________ and ________.

A. $35; $40 B. $30; $35 C. $45; $60 D. $80; $90

Economics