Suppose you will receive $500 at some point in the future. If the annual interest rate is 7.5 percent, then the present value of the $500 is
a. $411.26 if the $500 is to be received in 5 years and $338.95 if the $500 is to be received in 10 years.
b. $348.28 if the $500 is to be received in 5 years and $242.60 if the $500 is to be received in 10 years.
c. $291.11 if the $500 is to be received in 5 years and $272.89 if the $500 is to be received in 10 years.
d. $291.11 if the $500 is to be received in 5 years and $236.49 if the $500 is to be received in 10 years.
b
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Money today
A) is the demand for loanable funds. B) is the supply of loanable funds. C) is only currency inside banks. D) is fiat money. E) in the United States, is only dollar bills and coins.
An increase in government purchases of $200 billion will shift the aggregate demand curve to the right by
A) less than $200 billion. B) more than $200 billion. C) $200 billion. D) None of the above are correct. This policy shifts the long-run aggregate supply curve.
If you were going to evaluate the how much money you would need to pay on a loan, which Excel function would help you calculate it?
A. PMT B. Profit C. Sum D. Invest
Suppose initially there is no customs union and that the $100 tariff is imposed by the United States. Now, Mexico invests in productive technology and it shifts the Mexican supply curve to SMex. The United States now forms a customs union with Mexico. This will result in a price of _______ and imports of _______.
a. $250; 500 b. $250; 400 c. $150; 600 d. $150; 500