Compound interest:
A. describes how quickly an interest-bearing asset increases in value.
B. measures the rate of return of a portfolio of stocks and bonds.
C. measures the after-tax, inflation-adjusted rate of interest.
D. refers to the multiple rates of interest of various types of bonds in a portfolio.
A. describes how quickly an interest-bearing asset increases in value.
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The value of the multiplier changes if the ________ changes
i. marginal tax rate ii. marginal propensity to import iii. marginal propensity to consume A) i only B) ii only C) iii only D) i and iii E) i, ii, and iii
Explain why demand for a monopolistically competitive firm's product is more elastic than the demand curve that a monopolist faces
What will be an ideal response?
A good that provides external benefits to society has:
a. too few resources devoted to its production. b. too many resources devoted to its production. c. the optimal resources devoted to its production. d. not provided profits to producers of the good.
The purpose of open-market operations is to
a. finance government spending. b. influence the flow of credit and money. c. ensure the safety of deposits in the commercial banks. d. support the value of Federal Reserve notes.