Suppose a supplier has an agreement with a firm to be paid $50,000 in 4 years. If the annual interest rate is 1 percent, the supplier would be indifferent between receiving ________ now and waiting 4 years to receive the $50,000.

The Fed is institutionally independent. A major advantage of this is that monetary policy

a. is subject to regular congressional scrutiny. b. will often offset fiscal policy. c. is not controlled by politicians. d. is usually coordinated with fiscal policy.

If a decrease in income increases the demand for a good, then the good is a(n)

a. substitute good. b. complementary good. c. normal good. d. inferior good.