The sooner a payment is received and the higher the interest rate, the greater the present value of a future payment
a. True
b. False
Indicate whether the statement is true or false
False
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An expansion of the production possibilities frontier is
A) called economic growth. B) proof that scarcity is not a binding constraint. C) a free gift of nature. D) something that has occurred only rarely in history.
Describe, in general terms, the strategy of monetary policy, explaining how monetary-policy tools are used to achieve the goals of monetary policy
What intermediate stages are important in going from tools to goals? What are the links between the different stages? How does the Federal Reserve use this strategy today?
The central institution through which a laissez-faire system answers the basic economic questions is the
A. tribal council. B. market. C. government. D. central planning body.
Default refers to the
A. Rate of interest to be paid on a bond. B. Failure to make scheduled interest or principal payments on a bond. C. Failure of stock to increase in value. D. Amount to be repaid when the bond is due.