If the interest rate on saving is 5 percent per period, then the true opportunity cost of being paid $100 next period instead of this period is
A. $5.
B. $105.
C. less than $5 if people suffer from a “defective telescopic faculty.”
D. more than $5 if people suffer from a “defective telescopic faculty.”
Answer: A
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Use the following diagram to answer the next question.
Based on this diagram, we can say ________.
A. monetary policy is likely to be more effective at fighting a recession than fiscal policy B. investment demand is very sensitive to changes in the interest rate C. an increase in the money supply will have little effect on investment or aggregate demand D. expansionary monetary policy will be more effective at increasing aggregate supply than aggregate demand
________ like a check and ________ considered money
A) Debit cards work; are not B) Debit cards work; are C) E-checks work; are D) E-cash works; is not E) E-cash works; is
Which of the following was not a major factor in explaining the decline of death rates in the U.S. in the late 19th and early 20th century?
a. urbanization b. improvements in sanitation c. improvements in medical treatments d. Both a and c are correct.
When a tariff is applied to a good exported by a foreign monopoly (with no home producer), the increase in the equilibrium price is ________ the tariff applied.
a. more than b. less than c. the same as d. more than twice as much as