Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:

Savers have less incentive to care what their bank is doing with their money because their deposits are federally insured. This is a problem of

a. nominal interest b. adverse selection c. moral hazard d. the winner's curse e. a positive externality

Refer to the table below. What is the value of A plus B plus C plus D (A + B + C + D) or the present value of the first four payments?

The above table shows a 5 year payment plan. Each payment is made at the end of the year, so after one year, a payment of $1,000 is made, after two years another payment of $1,500 is made and so on. The interest rate is 3 percent.

A) $6,200.50
B) $6,225.32
C) $6,436.27
D) $6,589.23