As long as the interest is greater than zero, the future value of any balance is
A. either larger or smaller than the balance itself, depending upon the size of the positive interest rate.
B. greater than the value itself.
C. smaller than the value itself.
D. equal to the value itself.
Answer: B
You might also like to view...
In an economy where aggregate spending is given by Y = 5,500 + 0.6Y - 20,000r, the interest rate is currently 2 percent (0.02). If potential output equals 8,000, the central bank must ________ the interest rate to close the ________ gap.
A. raise; expansionary B. raise; recessionary C. lower; recessionary D. lower; expansionary
Income inequality is indicated by a Lorenz curve that:
a. bows up, away from the line of income equality. b. bows down, away from the line of income equality. c. lies parallel to the line of income equality. d. coincides with the line of income equality. e. approaches the vertical axis.
If price is above average variable cost and below average total cost, a profit-maximizing price taker should
a. immediately shut down; failing to do so is contrary to the idea of profit maximization in a competitive market. b. continue producing as long as it expects the market price to rise above average total cost in the near future. c. attempt to push price upward by slowly reducing output. d. cut price so more units can be sold.
To economists, games are:
A. situations in which individuals act against their own interest for fun. B. any situation in which players pursue strategies designed to achieve their goals. C. just recreational pursuits like chess, Monopoly, or poker. D. None of these statements are true.