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 $100 in the bank for a year?
A) $0 B) $10 C) $30 D) $50
C
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If there is currently a surplus of dollars, which of the following would you expect to see in the foreign exchange market?
A) The dollar will appreciate. B) The dollar will depreciate. C) There will be a decrease in the demand for dollars. D) There will be a decrease in the supply of dollars.
Replacing employment-based health care with a government-run system could reduce employers payments for their workers insurance, but the amount that they would have to pay in overall compensation
A) would remain essentially unchanged. B) would dramatically increase. C) would fall to zero. D) would dramatically decrease.