If exports and imports both rose, but exports rose less than imports,
a. AD would decrease
b. AD would increase.
c. AD would be unaffected.
d. AD could either increase or decrease.
a
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If the final expressions in a present value equation used to calculate the price of a bond you are considering buying are "[$75 / (1 + .04)6] + [$2,500 / (1 + .04)6]", which of the following is correct?
A) The face value is $75, the interest rate you need is 1.04 percent, and the coupon will mature in 6 years. B) The face value is $2,500, the coupon is $75, and the coupon will mature in 4 years. C) The face value is $2,500, the interest rate you need is 6 percent, and the coupon will mature in 4 years. D) The coupon is $75, the interest rate you need is 4 percent, and the coupon will mature in 6 years.
To an economist, total costs include
A) explicit, but not implicit costs. B) implicit, but not explicit costs. C) explicit and implicit costs. D) neither explicit nor implicit costs.
The opportunity cost of an airplane flight: a. differs across passengers only to the extent that each traveler pays a different airfare
b. is identical for all passengers and equal to the number of hours a particular flight takes. c. differs across passengers to the extent that both airfares paid and the highest valued use of travel time vary. d. is equal to the cost of a bus ticket, the next best form of alternative transportation to flying.
The aggregate demand curve shows how real GDP purchased varies with changes in:
A. unemployment. B. the price of a particular good. C. the overall price level. D. the interest rate.