The present discounted value of a stream of future income increases as the interest rate decreases.
Answer the following statement true (T) or false (F)
True
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At the end of 2007, the government had a debt of about $5,000 billion. During 2007, real GDP grew by about 0.8 percent and inflation was about 2.7 percent. About what is the largest deficit the government could have run without raising the debt-to-GDP ratio?
a. 135 billion b. 143 billion c. 169 billion d. 175 billion
In economics, the term _______________ describes spending that pays for the production and accumulation of capital goods.
a. investment b. capital c. money
Exchange controls used by a country's government to maintain an overvalued exchange rate result in considerable costs to the country. Explain the situation with a diagram and use it to show the deadweight loss. Explain why bribery and parallel markets can arise in economies with exchange controls.
What will be an ideal response?
As the interest rate decreases, the planned aggregate expenditure curve shifts downward.
Answer the following statement true (T) or false (F)