Which of the following has the highest present value?
A) $1,000 received in 3 years if the current interest rate is 4%
B) $1,500 received in 5 years if the current interest rate is 6%
C) $2,000 received in 6 years if the current interest rate is 11%
D) $3,000 received in 10 years if the current interest rate is 12%
B
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A hyperinflation occurs when
A) inflation persists for more than two years. B) inflation persists for more than five years. C) the inflation rate exceeds 50% per year. D) the inflation rate exceeds 50% per month
Were the government to decree that henceforth all wages and other input prices are to be indexed to nominal aggregate demand, this ________ "coordination failure" of the macroeconomy and ________ business cycles
A) solves the, amplifies B) solves the, dampens C) creates a, amplifies D) creates a, dampens
A firm will begin to experience diminishing returns at the point where
A) marginal cost increases. B) marginal cost decreases. C) marginal product increases. D) Both B and C
The benefits of social regulation are
A) easy to measure by the marginal value method. B) often difficult to measure. C) obvious to almost everyone, but the costs are usually hidden. D) greater than the costs of social regulation in every example in the country today.