In the above figure, if the interest rate is 2 percent per year, the ________ because ________
A) demand for money curve will shift; the quantity of money demanded is less than the quantity of money supplied
B) demand for money curve will shift; the quantity of money demanded is greater than the quantity of money supplied
C) interest rate will change; the quantity of money demanded is less than the quantity of money supplied
D) interest rate will change; the quantity of money demanded is greater than the quantity of money supplied
E) supply of money curve will shift; the quantity of money demanded is greater than the quantity of money supplied
D
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The ability of an individual, firm, or country to produce a certain good at a lower opportunity cost than other producers is referred to as:
A) marginal advantage. B) absolute advantage. C) cardinal advantage. D) comparative advantage.
Suppose when you are 21 years old, you deposit $1,000 into a bank account that pays 6 percent annual compound interest, and you do not withdraw from the account until your retirement at the age of 65, 44 years later. How much will be in the account when you retire?
A. $3,752 B. $46,794 C. $24,871 D. $12,985