Refer to the information below. The total revenues of Harvey's firm in the first year were:
Harvey quit his job at State University where he earned $45,000 a year. He figures his entrepreneurial talent or foregone entrepreneurial income to be $5,000 a year. To start the business, he cashed in $100,000 in bonds that earned 10 percent interest annually to buy a software company, Extreme Gaming. In the first year, the firm sold 11,000 units of software at $75 for each unit. Of the $75 per unit, $55 goes for the costs of production, packaging, marketing, employee wages and benefits, and rent on a building.
A. $50,000
B. $100,000
C. $605,000
D. $825,000
D. $825,000
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Fannie Mae and Freddie Mac both
A) sell bonds to investors and use the funds to purchase mortgages. B) help regulate the banking system. C) directly lend funds to people seeking mortgages. D) reduce access to funds for mortgages by purchasing existing mortgages.
If the aggregate demand curve shifts rightward less than expected
What will be an ideal response?
To combat a recession with discretionary fiscal policy, Congress and the president should
a. decrease government spending to balance the budget. b. decrease taxes to increase consumer disposable income. c. lower interest rates and increase investment by increasing the money supply. d. raise taxes on interest and dividends, but not on personal income.
A home buyer is presented with two options for financing the purchase of a home: a 20 year fixed rate mortgage or a 20 year adjustable-rate mortgage, where the rate adjusts once a year. Which mortgage would you expect to start at the lowest interest rate and why?
What will be an ideal response?