If the interest rate is 8 percent, the present value of $750 to be received two years from now is
a. $750.
b. $886.10.
c. $643.
d. $738.14.
C
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The horizontal short-run aggregate supply curve
A) assumes that wages and all other input prices are constant. B) assumes that opportunity cost is constant. C) shows that real GDP can be increased only when prices increase. D) assumes that there is full employment in the economy.
Explain what is meant by a devaluation of a currency. Under what circumstances would a country devalue its currency?
What will be an ideal response?
When the average price level falls, interest rates fall, which increases the consumption of certain goods and services. This sequence of events describes the _______ _______ _______.
Fill in the blank(s) with the appropriate word(s).
The tournament effect
A) may help explain why CEO are highly paid. B) why most golfers are below average. C) explains why the behavior of total revenue often patterns lottery sales. D) may help explain why CEOs are generally viewed as dishonest by the public.