Bank C promises to pay a compound annual interest rate of 6 percent, while Bank S pays an 8 percent simple annual interest rate on deposits. If you deposit $1,000 in each bank, after 10 years, your deposit in Bank C equals ________, while your deposit in Bank S equals ________.

Suppose the output gap is zero, and policy makers wish to reduce the inflation rate from 10 percent to 5 percent. Which of these policies seems best?

A) contractionary policies to reduce output at least 5 percent below potential output B) a convincing declaration of the inflation rate target, so that expected inflation falls to 5 percent C) no policy action; inflation will fall on its own, eventually D) no policy action; inflation will converge to its long-run rate, regardless of policy E) price and wage controls to counteract their stickiness

Conrad and Meyer (1958) found evidence to support the claim that the annual rates of return to slave agriculture were

(a) high enough to attract investment funds away from other alternatives in the cotton South. (b) high enough to benefit the entire Southern economy through the profits generated and the backward and forward links to other businesses. (c) relatively low in the new frontier, thus encouraging the new cotton producing areas of the South to move away from the slave system. (d) low enough that the people in the North could purchase the slaves and free them at minimal cost.