If the annual interest rate is 10%, the net present value of receiving $550 in the next year is:
a. $550
b. $551
c. $549
d. $500
a
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In Exhibit 1, what is the consumer surplus at a quantity of one unit when the price is $4?
a. $8
b. $7
c. $4
d. $3
Which one of the following is NOT a government failure?
A. The "bridge to nowhere" in Alaska B. The FEMA reaction to Hurricane Katrina C. Allowing federal budget deficits to be financed by foreigners while calling for further tax cuts to help incumbent politicians get reelected D. Water pollution
Which of the following is TRUE about how trade deficits and government budget deficits are related?
A. The government budget deficit leads to higher interest rates that will lead to a trade deficit. B. The government budget deficit leads to lower interest rates that will lead to a lower trade deficit. C. The trade deficit leads to a reduction in investment that leads to a government budget deficit. D. The trade deficit leads to a decline in imports relative to exports that leads to a government budget deficit.
________ involves a country selling its exports at a price lower than its cost of production.
A. Having a comparative advantage B. An export quota C. Having an absolute advantage D. Dumping