Referring to the graph above, an economic variable that had peaked in December 1912, and July 1918 is likely a ________ variable
A) leading countercyclical
B) leading procyclical
C) lagging countercyclical
D) lagging procyclical
E) none of the above
B
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A sum of $10,000 is deposited in a bank. Consider two situations: the bank offers an annual rate of interest of 10% and the bank offers an annual rate of interest of 15%. Compare the time value of money generated in both cases after:
a) one year. b) five years.
GDP is an indicator of a society’s standard of living, but it is only a rough indicator.
Select whether the statement is true or false. A. True B. False
The table below shows the number of labor hours required to produce one umbrella and one bushel of corn in the United Kingdom and the rest of the world. If the United Kingdom and the rest of the world begin to trade with each other, the international price of umbrellas will lie between ________ and Labor hours to make:In the United KingdomIn the Rest of the World1 umbrella3.002.001 bushel of corn1.000.25
A. three bushels of corn per umbrella; eight bushels of corn per umbrella. B. 1/3 of a bushel of corn per umbrella; three bushels of corn per umbrella. C. 1/8 of a bushel of corn per umbrella; 1/3 of a bushel of corn per umbrella. D. 1/8 of a bushel of corn per umbrella; eight bushels of corn per umbrella.
Suppose a firm anticipates that a particular R&D expenditure of $100 million will result in a new product and thus create a one-time added profit of $108 million a year later. The firm will:
A. undertake the R&D expenditure if its interest-rate cost of borrowing is 12 percent. B. undertake the R&D expenditure if its interest-rate cost of borrowing is 10 percent. C. not undertake the R&D expenditure if its interest-rate cost of borrowing is 9 percent. D. not undertake the R&D expenditure if its interest-rate cost of borrowing is 7 percent.