A rise in the money supply __________ the natural rate of interest
A) lowers
B) raises
C) has no effect on
D) has an uncertain effect on
C
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Winnie's Car Wash is a perfectly competitive firm. The table above shows Winnie's total product schedule. If the price of a car wash is $5, what is the value of marginal product of the 4th worker?
A) $300 B) $50 C) $70 D) $10
Which of the following is true of offshore banking?
a. The offshore banks are mainly concentrated in the European Union and the transactions are generally denominated in euro. b. The offshore banks operate with costly restrictions and pay higher taxes than the domestic banks. c. The offshore banks usually charge higher rates of interest on consumption loans than the domestic banks. d. Offshore banks in the U.S. are able to offer a higher rate on dollar deposits and a lower rate on dollar loans than their domestic competitors. e. Offshore banking transactions are considerably less risky than domestic transactions as they are closely monitored by the government of the nations in which they operate.
Consider the US market for chocolate, a market in which the government has imposed a price ceiling. Which of the following events could convert the price ceiling from a nonbinding to a binding price ceiling? a. a government study that shows that consuming chocolate increases the incidence of cancer. b. a large increase in the size of the cocoa bean crop; cocoa beans are used to produce
chocolate. c. South American cocoa bean producers refuse to ship to chocolate producers in the US. d. a sharp drop in consumer income; chocolate is a normal good.
Suppose the ABC Corporation had a stock price of $56.80 on December 31, 2006. On December 31, 2007, it has a stock price of $60.15. Over the year, it paid $2.00 in dividends per share. Calculate the total return of a share of ABC Corporation stock in 2007, showing your work.
What will be an ideal response?