If a series of severe storms in the Atlantic Ocean drastically significantly disrupted the transatlantic slave trade, which would most accurately describe the market for indentured servants in colonial America?
a. The price and quantity of servants would increase.
b. The price and quantity of servants would decrease.
c. The price of servants would increase and the quantity of servants would decrease.
d. The price of servants would decrease and the quantity of servants would increase.
a. The price and quantity of servants would increase. The storm would decrease the supply of slaves, thus increasing their price. Servants and slaves are substitutes. The demand for servants would increase, thus increasing both the price and quantity of servants.
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Which of the following factors influence the appropriate value for the social rate of discount used in NPV analysis of stock externalities?
A) Expected rate of economic growth B) Extent of social risk aversion C) The society's rate of time preference D) all of the above
The transactions demand for money
A. is determined by the Federal Reserve System. B. is a function of nominal Gross Domestic Product (GDP). C. varies directly with the rate of interest. D. varies inversely with the precautionary demand for money.