EKPENG MENTORING ISC UTS 2024

Will's expenditures on food for three consecutive years, along with other values, are presented in the following table. Refer to table above. If the nominal interest rate was 8 percent in Year 2, then

• the real interest rate in Year 2 was 3 percent.

• the real interest rate in Year 2 was 4 percent.

• Will's Year 1 food expenditures in Year 3 dollars amount to $6,200.

• Will's Year 1 food expenditures in Year 2 dollars amount to $5,800.

Suppose a closed economy had public saving of −$1 trillion and private saving of $3 trillion. What are national saving and investment for this country?

• $4 trillion, $2 trillion

• $2 trillion, $3 trillion

• $3 trillion, $3 trillion

• $2 trillion, $2 trillion

Sue Holloway was an accountant in 1944 and earned $12,000 that year. Her son, Josh Holloway, is an accountant today and he earned $210,000 in 2017. Suppose the price index was 17.6 in 1944 and 218.4 in the current year. Refer to the scenario, Josh Holloway's current year income in 1944 dollars is

• $16,923

• $148,909

• $26,059

• $11,528

A Texas household receives a Social Security check for $1500, which it uses to purchase a $40 pair of shoes made in Thailand by a Thai firm, a $1240 television made by a Korean firm in Korea, and $220 on groceries from a local store. As a result, U.S. GDP

• increases by $220

• increases by $1500

• increases by $280

• increases by $40

Suppose you are deciding whether to buy a particular bond. If you buy the bond and hold it for 4 years, then at that time you will receive a payment of $10,000. If the interest rate is 6 percent, you will buy the bond if its price today is no greater than

• $7,920.94

• $7,672.58

• $6,998.98

• $8,225.06