You lend $5,000 to a friend for one year at a nominal interest rate of 10%. Inflation during that year is 5%. As a result, you will receive ________ at the end of the year, but that money has a purchasing power of ________
A) $5,050; $5,025 B) $5,100; $5,050 C) $6,000; $5,500 D) $5,500; $5,250
D
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If you have a chance to be a stand-up comic earning $2 million, a plumber at $100,000, or an assembly line worker at $20,000, and would be willing to work at any of these jobs for $20,000, how much would your economic rent be if (a) you were a stand-up comic? (b) you were a plumber? (c) you were an assembly line worker?
What will be an ideal response?
Mitchell's money income is $150, the price of X is $2, and the price of Y is $2. Given these prices and income, Mitchell buys 50 units of X and 25 units of Y. Call this combination of X and Y bundle J. At bundle J, Mitchell's MRS is 2. Given these prices and income, what is Mitchell's equilibrium consumption of X?
A. X = 50 B. X > 50 C. X < 50 D. None of the statements is correct.
Which of the following disperses power between two legislative chambers?
A. federal countries B. bicameral countries C. unitary countries D. higher law constitutions
Based on the model of the money market, when real income decreases, the equilibrium interest rate should:
A. stay the same. B. increase. C. decrease. D. increase to the same extent that the supply of money increases.