Which value is higher? a) $1,000 today or b) $10,000 in 20 years if the interest rate is 12%.
What will be an ideal response?
a) 1,000; b) $10,000 x 10.37 = $1,037
The present value of b) $1,037 is greater than the present value of a) $1,000.
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An increase in bond prices will most likely result in
A) a decrease in the quantity demanded of money. B) an increase in the quantity demanded of money. C) an increase in the opportunity cost of holding money. D) an increase in interest rates.
Although a corporation is the most common type of firm, corporations generate only a small share of business revenue in the U.S. economy
Indicate whether the statement is true or false
The expenditure lags between fiscal actions and their effects on aggregate demand are probably fairly short.
Answer the following statement true (T) or false (F)
In a price leadership situation, where one firm sets a price for others to follow, the leading firm is the one with the
a. largest market share b. highest quality good c. most elastic demand curve d. least elastic demand curve e. most efficient production