Homer has been saving to buy a new car in five years and expects that the car of his dreams will cost $35,000
If the interest rate is 8 percent per year, how much money should Homer have in his bank account today in order to have enough money to buy the car in 5 years? A) $1,852.28
B) $22,055.94
C) $23,820.41
D) $25,726.04
C
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If there are only 10 firms in an industry, each with 10 percent of industry sales, this is an example of
a. monopolistic competition b. unbalanced oligopoly c. balanced oligopoly d. perfect competition e. insignificant firm market power
According to the quantity theory of money, if the quantity of goods and services doubles within the economy while velocity is constant and the money supply is cut in half, then the price level will be
a. unaffected b. four times higher c. times higher d. one-half its previous level e. one-fourth its previous level