You are better off choosing $400 in 4 years rather than $300 today if the interest rate is
a. lower than about 5.5 percent.
b. higher than about 5.5 percent.
c. lower than about 7.5 percent.
d. higher than about 7.5 percent.
c
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In the last few decades, there has been:
A. very little growth in free trade worldwide. B. no growth in free trade worldwide. C. a decline in free trade worldwide. D. great growth in free trade worldwide.
If the public has correct rational expectations and the Fed reduces both reserve requirements and the discount rate, it would be expected to result in: a. a higher level of real output and a lower price level. b. a lower price level but no change in real output
c. a higher price level and a reduced level of real output. d. a higher price level but no change in real output.
The value of future payments is affected by
A. The possibility of nonpayment. B. The par value. C. The level of dividends. D. Capital gains.
Explain how a tax reduction on capital gains and dividends might increase aggregate supply
What will be an ideal response?