What is the present value of $575 in a one year if the current rate of interest is 4 percent?
A) $410.71 B) $552.88 C) $598 D) $805
B
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Net exports are negative when
A. imports exceed exports. B. depreciation exceeds exports. C. exports exceed imports. D. net exports exceed imports.
The rationing function of price
A) occurs when there is a movement of resources into or out of markets as a result of changes in the equilibrium market price. B) is also known as the guiding function of price. C) occurs when consumers change their tastes and preferences. D) occurs only when the market experiences severe shortages.
All of the following are determinants of money demand except
A) the cost of transferring funds from interest earning assets to checking accounts. B) expectations about the future price level. C) the money supply. D) Real GDP.
The specialized information-gathering activities that banks use to evaluate borrowers are an example of the:
A. principle of comparative advantage. B. scarcity principle. C. cost-benefit principle. D. principle of increasing opportunity cost.