Doubling the future value will cause the:
A. present value to decrease.
B. present value to increase by less than 100%.
C. present value to double.
D. interest rate, i, to decrease.
Answer: C
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In the above figure, suppose the demand for dollars permanently decreases to D2. To maintain the target, the Fed
A) can buy dollars. B) can sell dollars. C) must decrease the nation's net exports. D) cannot permanently maintain the exchange rate target of 150 yen per dollar.
Which of the following is counted as part of M2?
a. Currency b. All of the answers are correct. c. Money market funds d. Checkable deposits at commercial banks
A decrease in supply:
a. Refers to a leftward shift in the supply curve b. Is likely to result from the decrease in the price of a productive resource c. Refers to a downward movement along a supply curve d. Has the same meaning as the phrase "a decrease in quantity supplied"
If you index Social Security benefits for prices rather than wages, this is likely to
A. increase benefits. B. bring about Social Security bankruptcy earlier. C. prevent Social Security bankruptcy altogether. D. reduce benefits.