What is the present value of four payments of $5,000 at the end of each of the next four years if the interest rate is 2 percent?
A) $9,430.50
B) $20,000.00
C) $19,038.64
D) $18,358.12
C) $19,038.64
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In consumer equilibrium, Harold consumes pizza, sodas, and other goods. Pizza and soda are complements for Harold. The price of a pizza rises while his income remains the same. Harold then consumes
A) more pizza and less soda. B) more pizza and more soda. C) less pizza and less soda. D) less pizza and more soda.
When the price level is rising at ______ and the real interest rate is 1 per-cent a year, the nominal interest rate is 3 percent a year
A. 4 percent a year B. 3 percent a year C. 2 percent a year D. 1 percent a year
Short-run cost functions are estimated using
A) time-series regression analysis. B) cross-sectional regression analysis. C) nominal cost data. D) present value cost data.
Suppose that in 2016, the national income in the United States was $200 billion, depreciation was $15 billion, personal taxes were $20 billion, and transfer payments were $10 billion. Gross domestic product in 2016 is
A) $185 billion. B) $215 billion. C) $220 billion. D) $245 billion.