Yolanda received a $100 savings bond for her birthday. The bond pays $100 at maturity, which is in five years. If the interest rate is 3%, the bond has a present value of $86.26

Major League Baseball teams are similar to other firms in that they use factors of production to produce a product (baseball games). An example of capital used by teams to produce their products is

A) the ballparks where the games are played. B) the labor of baseball players. C) the money teams earn from television contracts and ticket sales. D) the land on which baseball games are played.

An increase in aggregate demand is most likely to be caused by a(n) ________.

A. decrease in the tax rates on household income B. increase in real interest rates C. decrease in expected returns on investment D. decrease in government spending