A judge requires Harry to make a payment to Sally. The judge says that Harry can pay her either $10,000 today or $12,000 two years from today. Of the following interest rates, which is the highest one at which Harry would be better off paying the money today?
a. 4 percent
b. 6 percent
c. 9 percent
d. 11 percent
c
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Real business cycle theory emphasizes the role of
A) government spending as a cause of economic fluctuations. B) shocks to the money supply as a cause of economic fluctuations. C) demand shocks as a cause of economic fluctuations. D) technology shocks as a cause of economic fluctuations.
What is the Taylor rule and how does it work?
What will be an ideal response?
Consider the market for dollars. The higher the exchange rate, the ________ is the expected profit from holding foreign currency and the greater is the ________
A) larger; quantity of dollars supplied B) larger; leftward shift in the demand curve for dollars C) smaller; quantity of dollars supplied D) smaller; leftward shift in the demand curve for dollars
When both worker productivity and the price of the output being produced increase in an LDC, we can expect labor
a. demand to increase b. demand to decrease c. supply to increase d. supply to decrease e. supply and demand to shift out to the right