Sarah is able to take out a loan for $5000 for one year at an annual interest rate of 10 percent. After calculating her return to be $450, Sarah will:
A. make $50 on net, and should take out the loan.
B. lose $50 on net, and should not take out the loan.
C. lose $450 on net, and should not take out the loan.
D. make $450 on net, and should take out the loan.
Answer: B
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Data from the United States and the United Kingdom show that the short-run Phillips curve exhibits
A) positive slopes in both nations. B) shifts that occur every five years or so. C) a great deal of shifting. D) stability with shifts occurring only when there is an internal change of government. E) stability with shifts occurring only when external forces are strong.
Which of the following is not a key economic question?
(A) How should it be ensured that goods and services are paid for? (B) Who consumes these goods and services? (C) How should these goods and services be produced? (D) What goods and services should be produced?