If you leave your money in the bank at a fixed interest rate and allow for compounding of interest, show what will happen to your savings over time. Indicate with a graph whether there is a negative or positive slope between savings and time and what happens to the slope over time.
What will be an ideal response?
Placing time on the horizontal axis (the independent variable) and savings on the vertical axis (the dependent variable), savings will increase at an increasing rate (Figure 1-2). Slope is positive and increasing. For example, $100 saved at 5 percent interest will yield $105 at the end of one year. At the end of the second year, one has $105 + $105(.05) = $110.25. Savings increases by $5.25 in year 2, a greater increase than the $5 increase in year 1.
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The above figure shows supply and demand curves for apartment units in a large city. The area "c" represents
A) the loss in consumer surplus if a rent ceiling of $350 is imposed. B) a transfer from producers to consumers if a rent ceiling of $350 is imposed. C) a transfer from consumers to producers if a rent ceiling of $350 is imposed. D) the total revenue received by supplying Q1 units.
Increases in the burdens of government regulations can make production more costly for producers, shifting the short run aggregate supply curve left; it can also reduce potential output, shifting the long-run aggregate supply curve left
a. True b. False Indicate whether the statement is true or false