In the long run, an increase in aggregate demand causes the price level to _______ and the long-run aggregate supply curve to _____________

a. decrease; decrease
b. increase; increase
c. decrease; remain unchanged
d. increase; remain unchanged

d

Economics

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Using the Gordon growth model, if D1 is $.50, ke is 7%, and g is 5%, then the present value of the stock is

A) $2.50. B) $25. C) $50. D) $46.73.

Economics

Isabel purchases a $1,000 face value one-year Treasury bill for $934.58, and the next day investors decide they will only buy one-year Treasury bills if they receive an interest rate of 9%

If Isabel decides to sell her Treasury bill to another investor the day after she purchased it, she will A) receive a capital gain of $28.04. B) receive a capital gain of $7.76. C) suffer a capital loss of $18.69. D) suffer a capital loss of $17.15.

Economics