A large open economy has desired national saving of Sd = 1200 + 1000rw, and desired national investment of Id = 1000 - 500rw. The foreign economy has desired national saving of 
= 1300 + 1000rw, and desired national investment of 
= 1800 - 500rw. The equilibrium world real interest rate equals
A. 0.20.
B. 0.15.
C. 0.05.
D. 0.10.
Answer: D
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Suppose that you are a fishing boat owner and that you have purchased a boat for $75,000 with a 15 year loan for the full amount. What is your fixed cost per year, ignoring interest payments?
a. $1,000 b. $7,500 c. $5,000 d. $2,500 e. $3,750
When the housing bubble popped, the effect of the negative demand side shock and the negative supply side shock were the same on:
A. output, causing it to definitely decrease. B. prices, causing them to definitely rise. C. output, causing it to definitely increase. D. prices, causing them to definitely fall.
A person receives a paper asset from a corporation that is a promise from the corporation to repay a loan at a fixed rate of interest. This type of asset is referred to as a:
A. share. B. bond. C. stock. D. bank loan.
The three main categories of government outlays are
A. government consumption expenditures, government investment, and transfer payments. B. net government subsidies, the government deficit, and government purchases. C. government purchases, transfer payments, and net interest payments. D. net interest payments, government investment, and government consumption expenditures.