As interest rates ________, a firm would have to pay more now to purchase the same number of future dollars.
A. remain unchanged
B. fall
C. rise
D. Interest rates have no bearing on the payment for future dollars.
Answer: B
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Assume that brand X is an inferior good and name brand Y is a normal good. An increase in consumer income, other things being equal, will cause a(n):
a. upward movement along the demand curve for name brand Y. b. downward movement along the demand curve for brand X. c. rightward shift in the demand curve for brand X. d. leftward shift in the demand curve for brand X.
_____ refers to the situation faced by an insurance plan whose costs steadily increase as worse risks migrate toward it and better risks migrate away
a. Adverse selection b. Lemons problem c. Moral hazard d. Death spiral
An example of barter is voluntary work at an old-age home
a. True b. False Indicate whether the statement is true or false
If the exchange rate of Euros to American dollars was €1.00 = $1.00 yesterday and today is €1.00 = $1.05, then:
(a) The euro appreciated in value relative to the American dollar. (b) The euro depreciated relative in value to the American dollar. (c) All things being equal, imports from the Eurozone to America are more expensive today than they were yesterday. (d) Both (a) & (c) are correct.