Write the formula to find the present value of $x to be paid in n years
$x/(1 + r)n
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In a certain economy, the components of aggregate spending are given by: C = 100 + 0.9(Y - T) - 500rI = 150 - 1,000rG = 200NX = 50T = 100Given the information about the economy above, the immediate impact on aggregate expenditures of a one-percentage-point increase in the real interest rate (r) from 5 percent to 4 percent is ________, and the eventual impact on short-run equilibrium output is ________.
A. an increase by 15 units; a increase by 150 units. B. an increase by 150 units; a decrease by 1,500 units. C. an increase by 150 units, an increase by 150 units. D. a decrease by 15 units, a decrease by 150 units.
It is possible for an economy to become more productive and per-capita output to increase if
A) technology is improved. B) inventions are developed. C) new ideas are generated. D) all of the above
If the velocity of money is about 1.8 and the money stock is about $8 trillion, what is the real GDP?
A. $14.2 trillion B. $4.4 trillion C. $0.8 trillion D. We cannot compute real GDP from the data; we can only compute nominal GDP.
The basic task of economics is to
A) explain the tax and expenditure policies of governments. B) report on key economic indicators, such as GDP and unemployment. C) explain the forces that underlie human decision making. D) predict the future movements of the stock market.