Trading off capital goods for increasing amounts of consumer goods today will most likely result in
A) increased long-term growth.
B) decreased long-term growth.
C) decreased prices in consumer goods.
D) increases in the quantity of consumer goods.
B
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In economic theory, an unemployment rate of _________ considered desirable
a. 5 percent or less b. 9 to 10 percent c. Under 12 percent d. 18 percent
Because fiscal policy affects the quantity that the government borrows in financial capital markets, it not only affects aggregate demand, but it can also affect _____________ rates.
a. interest b. employment c. inflation d. wage
The economy has an annual inflation rate of 3.5%. It will take approximately how many years for the price level to double?
A. 28 years B. 21 years C. 10 years D. 35 years
With a nominal interest rate of 5%, the present discounted value of $100 to be received in one year is
A) $90.91. B) $95.23. C) $181.82. D) $190.00. E) $220.00.