After taking out a one year loan with an annual interest rate of 5 percent, Tommy pays $2,100 back to the bank. The principal of the loan must be ________ and the interest payment must be ________.
A. $2,100; $100
B. $100; $2,000
C. $2,000; $100
D. $100; $2,100
Answer: C
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Suppose the price levels in an economy in four successive years are 100, 120, 133, and 140 . Which of the following is true in such a case? a. The economy is experiencing hyperinflation
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If we consider the equation PAE = A + bY the part that corresponds to the MPC when we make simplifying assumptions is:
A. Y B. PAE C. b D. A