Which of the following is the correct way to compute the future value of $X that earns r percent interest for N years?
a. $X(1 + rN)N
b. $X(1 + r)N
c. $X(1 + rN)
d. $X(1 + r/N)N
b
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The interest rate is the price borrowers pay to borrow money. Key interest rates are controlled by the Federal Reserve System. If the Federal Reserve acts to reduce interest rates, economists would expect the quantity of money supplied to
A. increase. B. decrease. C. not change. D. Uncertain-economic theory has no answer to this question.
A consumption possibilities curve shows the combinations of two goods that can be consumed when a nation specializes in producing a particular good and trades with another nation
Indicate whether the statement is true or false
Unemployment rates tend to be highest during periods of:
A. recession. B. static movement. C. economic boom. D. recovery.
For a bank to earn as much profit as possible, its excess reserves should be:
A. equal to its required reserves. B. as small as possible. C. less than its vault cash. D. growing at a constant rate.