Write the rule of 70 . Suppose that your great-great-grandmother put $50 in a savings account 100 years ago and the account is now worth $1,600 . Use the rule of 70 to determine about what interest rate she earned
$1,600/$50 = 32 . The rule of 70 says that if X is the growth rate of a variable, then the variable doubles every 70/X years. This implies the value of the stock doubled five times. Since it doubled 5 times in 100 years, it doubled every 20 years. According to the rule of 70, the value of an asset doubles every 70/X years. So, we need 70/X = 20, which means that X is 3.5 percent.
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Government spending affects aggregate demand directly, and tax changes affect aggregate demand indirectly. Therefore, changes in
A. taxes are ineffective in changing aggregate demand. B. government spending affect aggregate demand more quickly than changes in taxes. C. taxes are virtually useless as a stabilization tool. D. government spending should be used with great caution.
Why does a newspaper dispenser open to a stack of newspapers and essentially “trusts” a consumer to take just one copy whereas a soft drink vending machine does not “trust” consumers and dispenses one can for each purchase?
Please provide the best answer for the statement.
The United States imports shoes from third world countries. This means that if the U.S. economy were closed, the domestic price of goods would be ________ the world price of shoes.
A. greater than B. close to C. less than D. equal to
Refer to Figure 2-2. What is the opportunity cost of one pound of meat?
A) pound of vegetables B) pounds of vegetables C) 1.6 pounds of vegetables D) 16 pounds of vegetables