Assume a baseball player's development in the minor leagues yields -$250,000 per year for four years
If the player were to have a single big league season and be paid $350,000, how much revenue would the player need to generate to be considered a positive net present value project from the point of view of the team owner if the interest rate was 4%? A) $1.45 million
B) $2.5 million
C) $350,000
D) $250,000
A
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In fiscal year 2008, the U.S. government ran a deficit of about $459 billion. In fiscal year 2009, the government ran a deficit of about $1,413 billion. Other things the same, this change would be expected to have
a. decreased interest rates and investment. b. decreased interest rates and increased investment. c. increased interest rates and investment. d. increased interest rates and decreased investment.
When PAE decreases then the economy will move towards:
A. constant levels of GDP. B. higher levels of equilibrium aggregate expenditure. C. lower levels of equilibrium GDP. D. higher levels of equilibrium GDP.
Which of the following is the dynamic version of the quantity theory of money?
A. Growth in the money supply ? inflation = growth in the velocity of money ? real growth B. Money supply × velocity = price level × real GDP C. Money supply + velocity = inflation + real growth D. Growth in the money supply + growth in the velocity of money = inflation + real growth
When domestic prices rise,
A. people buy fewer imported goods. B. exports rise. C. exports fall. D. business investment rises because interest rates fall.