When the interest rate is R, the formula for finding the value of a current amount $M one year from now is
A) M (1 + R/100).
B) M (1 + R).
C) M / (1 + R).
D) M / R.
E) M / (100R).
B
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Refer to Scenario 25-1. M2 in this simple economy equals
A) $3,000. B) $8,000. C) $14,000. D) $21,000.
Resources are
A) unlimited. B) able to be replicated in large quantities. C) what people would buy if their income was unlimited. D) used to produce goods and services to satisfy people's wants.
Bob deposits $100 in a bank account that pays an annual interest rate of 5 percent. A year later, Bob withdraws his $105 . If deflation was 7 percent during the year the money was deposited, then Bob's purchasing power has increased by 12 percent
a. True b. False Indicate whether the statement is true or false
The worst post–World War II recession in the United States occurred in
A. 1964 B. 1973 C. 1981 D. 2007