Suppose your bank pays you 4 percent interest per year on your savings account, so that $1,000 grows to $1,040 over a one-year period. If prices increase by 1 percent per year over that time, approximately how much real value do you gain by keeping $1000 in the bank for a year?

Refer to Figure 9-2. The tariff revenue collected by the government equals the area

A) D + E + F. B) B + D + E + F. C) E. D) C + D + E + F.

Good A has an income elasticity equal to 0.4 and a cross price elasticity with respect to Good B of 1.2 . Then: a. Good A is an inferior good and Goods A and B are substitutes. b. Good A is an inferior good and Goods A and B are complements. c. Good A is a normal good and Goods A and B are substitutes

d. Good A is a normal good and Goods A and B are complements.