The interest rate at which the present value of costs equals the present value benefits is the
A. coupon interest rate.
B. internal rate of return.
C. yield to maturity.
D. market interest rate.
Answer: B
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The table above gives the utility from pens and pencils. If the consumer has an income of $4, pens cost $1, and pencils cost $.20, what is the consumer's total utility when he or she maximizes utility?
A) 374 B) 225 C) 405 D) 365
A reduction in the capital gains tax, often advocated by proponents of supply-side economics, is supposed to stimulate increased
a. consumer spending. b. net exports. c. investment spending. d. government spending.
An item to which a business holds legal claim is called a(n)
A. opportunity cost. B. loan. C. asset. D. liability.
If a $1 million open market purchase by the Fed generates a new deposit at a bank that immediately causes the bank's reserves held at the Fed to increase by $1 million, then the T-account effects are that the bank's assets and liabilities ________ by $1 million and that the Fed's assets and liabilities ________ by $1 million.
A. increase; increase B. increase; decline C. decline; decline D. decline; increase