Reference no: EM13801732
1. What would happen in the market for loanable funds if the government were to decrease the tax rate on interest income?
a. The supply of loanable funds would shift rightward and investment would increase.
b. The supply of loanable funds would shift leftward and investment would decrease.
c. The demand for loanable funds would shift rightward and investment would increase.
d. The demand for loanable funds would shift leftward and investment would decrease.
2. Suppose you put $500 into a bank account today. Interest is paid annually and the annual interest rate is 3 percent. The future value of the $500 after 1 year is
a. $485.44.
b. $496.50.
c. $509.28.
d. $515.00
3. Suppose you put $500 into a bank account today. Interest is paid annually and the annual interest rate is 8 percent. The future value of the $500 after 2 years is
a. $428.67.
b. $470.00.
c. $580.00. 1.
d. $583.20.
4. Suppose your uncle offers you $100 today or $150 in 10 years. You would prefer to take the $100 today if the interest rate is
a. 3 percent.
b. 4 percent.
c. 5 percent.
d. None of the above is correct.
5. Noah is an unpaid stay-at-home father who is not currently searching for paid work. Pete is a full-time student who is not looking for a job. Who is included in the labor force by the Bureau of Labor Statistics?
a. only Noah
b. only Pete
c. both Noah and Pete
d. neither Noah nor Pete
6. Suppose that the adult population in the country of Atlantis is 115 million. If 80 million people are employed and 5 million are unemployed, then
a. 30 million are not in the labor force.
b. 35 million are in the labor force.
c. 75 million are in the labor force.
d. 35 million are not in the labor force.
7. The Bureau of Labor Statistics produces data on
a. unemployment.
b. types of employment.
c. length of the average workweek.
d. All of the above are correct.
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: What would happen in the market for loanable funds if the government were to decrease the tax rate on interest income? Suppose you put $500 into a bank account today. Interest is paid annually and the annual interest rate is 8 percent. The future val..
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