Based on the graph for saving incentives, a tax law change encouraging saving would ______.
a. create a negative equilibrium real interest rate
b. have little or no effect on the equilibrium real interest rate
c. increase the equilibrium real interest rate
d. decrease the equilibrium real interest rate
d. decrease the equilibrium real interest rate
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The Marshall-Lerner condition holds that a country's current account balance will ________ in response to a real ________ in a nation's currency if ________
A) improve; depreciation; sum of the price elasticities of export and import demand exceeds 1 B) worsen; depreciation; sum of the price elasticities of export and import demand exceeds 1 C) improve; appreciation; sum of the price elasticities of export and import demand exceeds 1 D) improve; appreciation; sum of the price elasticities of export and import demand exceeds 0 E) worsen; depreciation; sum of the price elasticities of export and import demand exceeds 0
Refer to the table below. If the discount rate is 6 percent and the cost of the investment is $45,000, what is the net present value of the investment?
The above table shows the future operating profits from an investment. The future operating profits are earned at the end of each of the respective years.
A) -$1,074.48
B) $1,100.56
C) $43,925.52
D) -$44,852.36
You overhear a businessman say: "We want to be big because there are economies associated with bigness." What he means is that
A. total fixed cost decreases as more is produced. B. total cost decreases as more is produced. C. marginal cost decreases as more is produced. D. long-run average cost decreases as more is produced.
The price elasticity of demand is defined as the:
A. Percentage change in quantity demanded times the percentage change in price. B. Unit change in price divided by the unit change in quantity demanded. C. Percentage change in quantity demanded divided by the percentage change in price. D. Unit change in quantity demanded times the unit change in price.