Suppose the interest rate is 4 percent. Which of the following has the greatest present value?
a. $100 today plus $190 one year from today
b. $150 today plus $140 one year from today
c. $200 today plus $90 one year from today
d. $250 today plus $40 one year from today
d
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Which of the following will hold true if the market for cameras is in equilibrium at a price of $40?
A) The quantity of cameras produced will equal the quantity of cameras bought in the market. B) Sellers of cameras will have an incentive to charge a price higher than $40. C) Buyers of cameras will want to buy fewer cameras than they are purchasing at equilibrium. D) If the cost of producing cameras falls below $40 per camera, all sellers will stop supplying cameras.
Which of the following would NOT cause the IS curve to shift to the left?
A) a decrease in government purchases B) an increase in consumer confidence C) a decrease in foreign demand for domestic products D) a decrease in the expected future profitability of capital
Lower prices are always better for society
a. True b. False Indicate whether the statement is true or false
When a firm operates under conditions of monopoly, its price is
a. not constrained. b. constrained by marginal cost. c. constrained by demand. d. constrained only by its social agenda.