As interest rates rise, a firm would
A. have lower expected costs of investment.
B. be willing to pay less now to purchase the same number of future dollars.
C. have increasing present value of expected earning.
D. be willing to pay more now to purchase the same number of future dollars.
Answer: B
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In the late 1920s, you could buy $10,000 worth of stock by putting down as little as
A. $100. B. $1,000. C. $2,500. D. $5,000.
A country has 6,000 total efficiency units of labor. If the average efficiency of each worker in the economy doubles, the country will have ________ efficiency units of labor, everything else remaining unchanged
A) 48,500 B) 36,000 C) 300 D) 12,000
Suppose the demand for rescue services in our national parks is perfectly inelastic. This fact would mean that a 31 percent increase in rescue fees leads to
A) a 31 percent decrease in the quantity demanded. B) a 31 percent increase in demand. C) a 31 percent decrease in demand. D) no change in the quantity demanded. E) a decrease in the quantity demanded to 0 rescues.
Which of the following is an important lesson that can be drawn from the experience of the Great Depression?
a. Frequent shifts in monetary policy can help smooth out unstable economic conditions during a recession. b. Trade restrictions can "save jobs" and expand total employment during an economic downturn. c. The good intentions of political decision-makers are no substitute for sound policy. d. The federal government should always balance its budget during a recession.