If the interest rate is 10% then the net present value of the investment is
a. $5,000
b. - $9,091
c. -$15,290
d. -$21,901
c
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A market system is not considered an effective way of controlling self-interest.
Answer the following statement true (T) or false (F)
Economic growth could make a country worse off
Indicate whether the statement is true or false
If you purchased shares of common stock in 1990 for $1,000 and sold them for $2,000 in 2001 you would be liable for taxes on
a. $2,000. b. $1,000 less the rate of inflation. c. $1,000. d. $2,000 less the rate of inflation.
Refer to the table. If the legal reserve ratio falls from 25 percent to 10 percent, excess reserves of this single bank will:
A. rise by $6,000 and the monetary multiplier will increase from 4 to 10.
B. rise by $60,000 and the monetary multiplier will increase from 4 to 10.
C. fall by $6,000 and the monetary multiplier will decline from 30 to 10.
D. fall by $2,000 and the monetary multiplier will decline from 10 to 4.