If the interest rate is 12%, the current market value of $1 to be delivered in one year is
A. $0.89.
B. $0.95.
C. $1.00.
D. $1.15.
Answer: A
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An economic system includes
a. money, stocks and bonds b. a mechanism for allocating resources and a mode of resource ownership c. a mechanism for dividing up resources and a way to ensure that technology advances d. a mechanism for allocating stocks, bonds and money and a mode of technology e. government ownership, labor time, and machines
What is one reason private solutions to externalities do NOT always work?
a) Government participation in such solutions complicates the process. b) Some parties benefit from externalities. c) Interested parties incur costs in the bargaining process. d) The actual costs and benefits of the problem are difficult to see.
The changing of government expenditures to achieve national economic goals is
A. inflationary fiscal policy. B. discretionary fiscal policy. C. automatic fiscal policy. D. budget deficit policy.
Refer to Table 3-3. The table above shows the demand schedules for Kona coffee of two individuals (Luke and Ravi) and the rest of the market. At a price of $4, the quantity demanded in the market would be
A) 40 lbs. B) 70 lbs. C) 110 lbs. D) 150 lbs.