Would you rather receive $100 in eight years paying an interest rate of 10% or be given 48 dollars today?
A) I would rather receive 48 dollar today.
B) I would rather receive $100 in eight years.
C) I am indifferent between the two options.
D) I cannot determine which I would prefer.
A
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Refer to the graphs, in which the numbers in parentheses near the AD1, AD2, and AD3 labels indicate the level of investment spending associated with each curve. All figures are in billions. The economy is at point Y on the investment demand curve. Given these conditions, what policy should the Fed pursue to achieve a noninflationary full-employment level of real GDP?
A. Increase aggregate demand from AD3 to AD2
B. Decrease the money supply from $225 to $150 billion
C. Increase interest rates from 4 to 8 percent
D. Make no change in monetary policy
For something to be considered money it must be:
A. Can be used to barter. B. Generally accepted as a medium of exchange. C. Has value. D. A government declares to have value.