If a student borrowed $5,000 at a fixed rate of 8.9 percent to pay for this year's college expenses and the annual inflation rate turns out to be 11 percent, then the student's purchasing power for the year has increased
a. True
b. False
Indicate whether the statement is true or false
True
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Whenever individuals think about investing money in stocks, bonds, or real estate, they must consider:
A. the trade-off between future value and expected value. B. the opportunity cost of the risk involved. C. the trade-off between risk and expected value. D. the opportunity cost of the expected value.
Refer to the following figure showing demand and marginal revenue for a monopoly.
At any price above $________ demand is elastic.
A. $5 B. $15 C. zero D. $20 E. $10
Picture a competitive market with the usual upsloping supply curve and downsloping demand curve. If the current price is creating a shortage, then market forces will cause the price to adjust and:
A. Quantity supplied will increase B. Quantity supplied will decrease C. Quantity demanded will increase D. Demand will decrease
A decrease in the level of real GDP in the economy leads to:
A. a leftward shift in the demand for money curve. B. a rightward shift in the demand for money curve. C. a leftward movement along the demand for money curve. D. a rightward movement along the demand for money curve.