Cleo promises to pay Jacques $1,000 two years from today. If the interest rate is 4 percent, then how much is this future payment worth today?
a. $924.56
b. $931.44
c. $937.87
d. None of the above are correct to the nearest cent.
a
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The capital and financial account balance is equal to
A) the value of exports of U.S. capital goods minus the value of imports of capital goods into the United States. B) exports minus imports. C) foreign assets owned by the United States minus U.S. assets owned by foreigners. D) U.S. investment abroad minus foreign investment in the United States. E) foreign investment in the United States minus U.S. investment abroad.
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 did not prohibit companies issuing securities from paying the credit-rating agencies to rate them. This is an example of which remedy of conflicts of interest?
A) regulate for transparency B) supervisory oversight C) leave it to the market D) socialization of information production
What is the appropriate degree of abstraction?
a. The more detail there is, the better. b. The detail should be minimized in order to avoid all complexity. c. Abstraction is unnecessary, and should be avoided. d. Abstraction is the essence of analysis, and is pursued for its own sake. e. It depends on the objective of the analysis.
Why is it important to distinguish nominal GDP from real GDP?
What will be an ideal response?