At an interest rate of 5 percent, the present value of $1,000 to be received three years from today is
A) less than $875.
B) between $875 and $925.
C) between $925 and $975.
D) more than $975.
A
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If a percentage decrease in money supply is followed by a proportional percentage decrease in prices and output, this means that:
a. the velocity of money is constant. b. the economy is in a recession. c. the velocity of money has fallen. d. real GDP is constant. e. the economy is not at maximum capacity
A change in the reserve requirement affects:
A. The money multiplier and excess reserves. B. Excess reserves and the discount rate. C. The discount rate and the federal funds rate. D. The money multiplier and the federal funds rate.
An economist looks at data that suggests that people are making decisions that are based on rules of thumb. She concludes that people tend to make decisions that are based on habit and not on the economic decision rule. She is most likely a(n):
A. behavioral economist. B. irrational economist. C. traditional economist. D. engineering economist.
Jayanthi moves her yoga studio from her home to a space she rents in Oakland, California. Holding everything else constant, as a result of this move
A) her explicit cost falls and her implicit cost rises. B) her implicit cost falls and her explicit cost rises. C) her economic cost rises. D) her opportunity cost rises.