How much money would you have to put into a savings account today to be worth $500 three years from now at a market rate of interest equal to 8 percent?
A. $397
B. $420
C. $351
D. $459
Answer: A
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Tax smoothing is intended to ________
A) reduce income inequality B) avoid fluctuations in the ratio of the government deficit to GDP C) shift the burden from current taxpayers onto future generations D) keep the tax wedge from shrinking
In a price system, changes in prices
A) make it difficult for the system to function well. B) imply that people have made mistakes in the past. C) signal to everyone in the system what goods are relatively more or less scarce. D) signal to policy makers what goods should and should not be taxed more.
A major distinction to be made is that deficits count government spending shortfalls ___________, and public debt counts _______________.
A. in a year; the total amount owed from all years B. from all years; the total from a single year C. in real terms; in nominal terms D. as a percentage of GDP; in nominal terms
Higher standards of living are the result of
What will be an ideal response?