The value today of a specific sum of money to be received in the future is referred to as:
A. the future value of that sum of money.
B. the present value of that sum of money.
C. compound interest.
D. the time-value of money.
Answer: B
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A stronger dollar leads to lower input prices for U.S. firms because
A) U.S. workers are willing to work for less pay because of the stronger dollar. B) U.S. producers of intermediate goods lower prices in order to benefit from the stronger dollar. C) both exports of raw materials and intermediate goods are lower in prices. D) both imports of raw materials and intermediate goods are lower in prices.
A monopoly maximizes its profits using what rule?
a. P = ATC b. MR = ATC c. Q = MC d. MR = MC e. pick the highest price possible, as long as some units still sell
Define the following terms and explain their importance to the study of macroeconomics. a. the relationship between interest rates and velocity b. lags in stabilization policy c. rules versus discretion
What will be an ideal response?
Increases in real GDP since 1900 can actually underestimate growth in the standard of living for Americans since 1900 because
A) the level of pollution in 1900 was much higher than it is today. B) the crime rate was higher in 1900 than it is today. C) goods and services are more expensive today as compared to 1900. D) the quality of health care that exists today was not available in 1900.