The ________ of R dollars to be paid in t years is the amount you have to put aside now if you want to ensure that you end up with R dollars t years from now.
A. present discounted value
B. investment value
C. future discounted value
D. present actual value
Answer: A
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The figure above shows a monopoly firm's demand curve. The monopoly's total revenue is zero at point
A) x. B) r. C) t. D) u.
In late 2010 the National Bank of Australia offered a 4 percent interest rate on a savings account while Bank of America offered 2 percent. This difference means that
A) people expect the U.S. dollar to appreciate to 8 percent against the Australian dollar and interest rate parity to occur. B) there will be a surplus of U.S. dollars in the foreign exchange market. C) people expect the U.S. dollar to appreciate by 2 percent against the Australian dollar and interest rate parity to occur. D) there will be a shortage of Australian dollars in the foreign exchange markets.
According to new classical economics, fiscal policy can change equilibrium real GDP only if it changes the price level or one of the determinants of aggregate supply, and people expect this change
a. True b. False Indicate whether the statement is true or false
Trade dollarization refers to the phenomenon of:
a. the practice of insisting on trade in U.S. dollars. b. the fact that many international commodities are traded in U.S. dollars only. c. the fact that many dollars have flowed out of the U.S. and are used in other nations as their national currency. d. the falling dollar combined with a rising trade balance.