The most that someone would pay today to receive a certain sum at some point in the future is known as
A) the interest rate.
B) present value.
C) future value.
D) economic profit.
Answer: B
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Economist David Ricardo argued that rent
a. is unethical b. would be higher if the country opened its doors to international trade c. determines the value of the goods produced with the asset d. depends on price and not, as commonly thought, price depends on rent e. can only be earned on land
What impact do the following have on the aggregate demand curve? Give suitable examples to support your answers
a. The Wealth Effect b. The Interest Rate Effect c. The Exchange Rate Effect
According to the theory of the invisible hand, if buyers and sellers are free to pursue their own self-interest, the result often will be:
A. an efficient allocation of resources. B. an equitable allocation of resources. C. the exploitation of productive resources. D. an incomplete allocation of resources.
Refer to the diagram. A decrease in demand is depicted by a:
A. move from point x to point y.
B. shift from D 1 to D 2 .
C. shift from D 2 to D 1 .
D. move from point y to point x.