Suppose when you are 21 years old, you deposit $1,000 into a bank account that pays annual compound interest, and you do not withdraw from the account until your retirement at the age of 65, 44 years later. How much more will be in your account if the interest rate is 6 percent rather than 4 percent?
A. $880
B. $5,617
C. $2,390
D. $7,369
Answer: D
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When the demand curve for an input is a derived demand this means that
A) the demand curve is derived from the demand for the final product being produced. B) the demand curve depends upon the MFC. C) the law of diminishing marginal product does not hold. D) the demand curve slopes upward.
Economic inefficiency exists when
A) P = MR. B) P = MC. C) MR = MC. D) P > MC.
Banks, savings and loans associations, and credit unions that are able to loan out some fraction of their deposits are
a. examples of financial intermediaries b. all required to be FDIC members c. always the most risky investors d. part of the Federal Reserve System e. disallowed from charging interest on their deposits but can charge interest on their loans
An increase in aggregate demand will reduce the unemployment rate only if the ensuing inflation is anticipated
a. True b. False Indicate whether the statement is true or false