If the interest rate is zero, a promise to receive a $100 payment one year from now is:
A. more valuable than receiving $100 today.
B. equal in value to receiving $101 today.
C. equal in value to receiving $100 today.
D. less valuable than receiving $100 today.
Answer: C
You might also like to view...
If the marginal propensity to consume (MPC) is 0.9, the spending multiplier will be
A) 10. B) 1.11. C) 0.9. D) 0.1.
To use an analogy that helps explain the ABCs of economic development: To build a skyscraper, you must first build the foundation. In order for an economy to create economic development, it must first develop a solid
a. network of resources b. production possibilities curve c. infrastructure d. dualist structure e. base for foreign investment and aid
Spending on an education is considered an investment because it involves a sacrifice of current income for higher expected future income
a. True b. False Indicate whether the statement is true or false
An Internet site that maintains a database of product reviews that anyone can access and that has advertisement banners is:
A. a government provided public good. B. a privately provided public good. C. a private good. D. a privately provided collective good.