David borrowed \( \$ 6000 \) from a lender that charged simple interest at an annual rate of \( 7 \% \). When David paid off the loan, he paid \( \$ 1680 \) in interest. How lo was the loan for, in years? If necessary, refer to the list of financial formulas.

QUESTION 15 According to Keynesian economists, during a boom in economic activity a) money supply should be increased. b) interest rates should be cut. c) government should increase its spending. d) tax rates should be raised.

QUESTION 20 Which of the following is an example of foreign direct investment? a) General Motors buys steel from South Korea. b) General Motors of the USA buys shares in Saab of Sweden. c) McDonald's builds a restaurant in Moscow. d) UK publisher Bloomsbury sells the rights to make a film of a Harry Potter book to an American film studio.

QUESTION 19 If Japan exports more than it imports, a) Japan's net exports are negative. b) Japan is running a trade deficit. c) Japan's net capital outflow must be positive. d) Japan's net capital outflow must be negative.

An economy is at equilibrium output when a) \( Y=C+I+G+(X-M) \) b) \( Y=A D+C+G+(X-M) \) c) \( Y=A D+C+I+G+(X-M) \) d) \( Y=A D+C+1+G \)

QUESTION 18 Which of the following might be expected to generate employment? a) Economic growth that is capital intensive. b) Higher taxes for small businesses. c) A fall in the productivity of workers. d) The promotion of exports and investment.