Suppose there is no inflation, and the current interest rate is 5% per year. Sarah plans to open a savings account and deposit $100 annually for the next 14 years. At the end of the period, the balance of her savings account will be
A) 100(1.0514 - 1).
B) 2000(1.0514 - 1).
C) 2000(1.0512 - 1).
D) 20(1.0512 - 1).
B
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When the interest rate is above the equilibrium interest rate there is an
A) excess quantity of money and people will sell bonds. B) excess demand for money and people will sell bonds. C) excess quantity of money and people will buy bonds. D) excess demand for money and people will buy bonds.
U.S. imports rise when income in the United States increases.
Answer the following statement true (T) or false (F)
The fact that the demand for eggs is inelastic is not surprising because
A. the supply of eggs is inelastic. B. there are many substitutes for eggs as breakfast food. C. they are so inexpensive. D. the demand for food is inelastic.
Related to the Economics in Practice on page 203: Licenses to sell hot dogs in New York City's Central Park are considerably higher than the licenses to sell hot dogs in the rest of the city. Which of the following statements regarding the above information is true?
A. Despite this, hot dogs are less expensive in New York's Central Park than in the rest of the city. B. Due to this, hot dogs are more expensive in New York's Central Park than in the rest of the city. C. Despite this, hot dogs sell for the same price in New York's Central Park as they do in the rest of the city because the hot dog market is perfectly competitive. D. Despite this, hot dogs sell for the same price in New York's Central Park as they do in the rest of the city because the city regulates the price of hot dogs.