If the interest rate is 10 percent, the net present value of $500 to be received one year from now is
a. $413.22.
b. $450.
c. $454.55.
d. $500.
C
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A lump-sum tax, such as a $1000 tax that every family must pay one time, is
A) negatively related to real GDP. B) an autonomous tax. C) a regressive tax. D) a type of income tax.
The Lucas critique is an objection to the assumption that
A) inflation is always and everywhere a monetary phenomenon. B) there is a negative relationship between inflation and unemployment. C) historical relationships between macroeconomic variables will continue to hold after new policies are in place. D) people form expectations rationally.
Federal Reserve districts
A) conform to state boundaries. B) group together economically similar states. C) have equal populations. D) cut across state and economic boundaries.
The price where quantity demanded is equal to quantity supplied is known as
a. equilibrium price. b. equilibrium quantity. c. equilibrium rate. d. equilibrium level.