If the annual interest rate is 4 percent, a consumer who spends $100 today
a. will have to pay back $104 to the bank
b. would have to pay $104 next year to get the same goods
c. will receive $96 from the bank next year
d. would have to pay $96 next year to get the same goods
e. is giving up the ability to spend $104 on goods next year
E
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Identify the correct statement related to objective and subjective performance measures.
A. Subjective measures induce dysfunctional behaviors while objective measures do not. B. Subjective measures are used in explicit formal contracts. C. Objective measures can create incentives for gaming. D. Objective measures are more accurate than subjective measures.
Explain the concept of diminishing returns.
What will be an ideal response?
Both the trade and budget balance were in roughly zero until the 1980s when the budget deficit increased dramatically and the U.S. trade deficit increased dramatically
However, during the late 1990s the budget deficit shrank—in fact, moving to surplus—at the same time that the U.S. trade deficit increased significantly. Since 2000, the budget deficit has increased significantly, particularly after 2008.What is the relationship between a country's trade balance and its stance as a borrower or lender? Historically, has the U.S. been a net lender or net borrower? Why do you think that this is? Do you think that the U.S. budget situation might have anything to do with this?
Chaletland should _____ interest rates during a recession and _____ interest rates during an economic boom in order to maintain long-run equilibrium.
A) Increase; increase B) Decrease; decrease C) Decrease; increase D) Increase; decrease