Which of the following is true?
A) Compound interest means that you are earning interest on the principal but not prior interest earned.
B) All of the above are true.
C) The law of compound interest highlights the importance of beginning to save at a young age.
D) Assume a 7 percent rate of interest and a price of $6 per pack of cigarettes. Smoking one pack of cigarettes per day for 50 years will cost the smoker $109,500 (=$6 365 days50 years).
C) The law of compound interest highlights the importance of beginning to save at a young age.
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Countercyclical fiscal policy is
a. fiscal policy designed to intensify the business cycle in the same way that we fight fire with fire b. fiscal policy designed to moderate the severity of the business cycle c. fiscal policy designed to make the economy grow faster than the rate of growth represented by the long term trend d. fiscal policy that does not depend on government intervention in the economy e. fiscal policy that moves in one direction only: increases in government spending that are designed to make the economy grow faster
The establishment of Silicon Valley in California is a contemporary example of _______; one that many have unsuccessfully tried to
Fill in the blank(s) with the appropriate word(s).
During the short run, fiscal policy mainly influences ______.
a. saving b. investment c. economic growth d. aggregate demand
Exhibit 2-15 Production possibilities curve
In Exhibit 2-15, evidence of the law of increasing opportunity costs is:
A. to get the first 10 capital goods, economy has to give up 2 consumption goods but to get the next 10 capital goods, the economy has to give up 8 consumption goods. B. the downward slope of the production possibilities curve. C. the amount of capital goods increases by 10 units as the economy moves from point J to point K to point L to point M to point N. D. the amount of capital goods increases by 10 units as the economy moves from point L to point G.