What is the present value of $50,000 to be received after one year, if the market rate of interest is 8% per year?
A) $44,110.98
B) $44,322.87
C) $46,296.30
D) $48,376.21
C
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How the price of a depletable resource changes over time depends on
a. how the technology of resource extraction changes. b. the interest rate. c. how the technologies of production change in firms that use the resource. d. All of the above are correct.
Stagflation can be defined as a combination of ____.
A. economic migration and inflation B. economic aggregation and deflation C. economic stagnation and inflation D. economic aggregation and inflation
The production decision is another term for the investment decision.
Answer the following statement true (T) or false (F)
Suppose the U.S. one-year interest rate is 3% per year, while a foreign country has a one-year interest rate of 5% per year. Ignoring risk and transaction costs, a U.S. investor should invest in foreign bonds as long as the expected yearly rate of depreciation of the foreign currency is
A) less than 5%. B) greater than 5%. C) greater than 2%. D) less than 2%. E) less than 1%.