Assuming a market rate of interest equal to 7 percent, what is the present value of $200 to be received one year from today?
A) $123
B) $156
C) $187
D) $210
C
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The following are the equations for the supply and demand curves in the market for weezils: Demand: Qd= 20?2P Supply: Qs= 5 + 3P where Qdis the quantity demanded, Qsis the quantity supplied, and P is the price per weezil in dollars. Refer to Exhibit 4-1. According to the data given, the equilibrium price of a weezil is
A. $3. B. $5. C. $11. D. $14.
Suppose two companies, Macrosoft and Apricot, are considering whether to develop a new product, a touch-screen t-shirt. The payoffs to each of developing a touch-screen t-shirt depend upon the actions of the other, as shown in the payoff matrix below (the payoffs are given in millions of dollars).
Suppose Apricot makes its decision first, and then Macrosoft makes its decision after seeing Apricot's choice. What will be the equilibrium outcome of this game?
A. Neither Apricot nor Macrosoft will develop a touch-screen t-shirt. B. Apricot will develop a touch-screen t-shirt, and Macrosoft will not. C. Macrosoft will develop a touch-screen t-shirt, and Apricot will not. D. Both Apricot and Macrosoft will develop a touch-screen t-shirt.
A bank run is:
A. the situation that arises from fear that the bank is in danger of running out of money. B. when a bank's reserves are not enough to satisfy all withdrawal demands. C. when all depositors from a single bank demand to withdraw all deposits at once. D. All of these are true.
Monetary policy is one of the two main macroeconomic tools governments use to control the aggregate economy. The other is:
A. trade policy. B. foreign policy. C. immigration policy. D. fiscal policy.