Present value:
A. is always greater than the future value of money.
B. does not account for inflation.
C. is how much an amount of money obtained in the future is worth today.
D. All of these statements are true.
C. is how much an amount of money obtained in the future is worth today.
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How does a firm in monopolistic competition determine its price and quantity? What type of profit can it earn in the short run and the long run?
What will be an ideal response?
When the Fed raises the legal reserve requirement, it
a. lowers the cost of borrowing from the Fed, allowing banks to make more loans b. raises the cost of borrowing from the Fed, disallowing banks from making the same quantity of loans c. increases the amount of excess reserves that banks hold, allowing them to make more loans d. increases the amount of excess reserves that banks hold, disallowing them from making the same quantity of loans e. decreases the amount of excess reserves that banks hold, disallowing them from making the same quantity of loans
Suppose the value of the CPI is 1.100 in year one, 1.160 in year two, and 1.270 in year three. Assume also that the price of computers increases by 3% between year one and year two, and by another 3% between year two and year three. The price level is increasing, the inflation rate is ________, and the relative price of computers is ________.
A. increasing; decreasing B. constant; increasing C. increasing; increasing D. constant; decreasing
Refer to the scenario above. What is likely to be the impact on Firm A's sales if Firm B decides to sponsor the event while Firm A decides not to sponsor the event?
A) A 5% increase in sales B) A 7% increase in sales C) A 0% increase in sales D) A 2% increase in sales