The present value of $1 million to be received in the future will
a. increase if the interest rate rises.
b. increase if the payment is received at a more distant time in the future.
c. be greater than $1 million.
d. increase if the interest rate were to fall from 8 percent to 4 percent.
D
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Refer to Figure 10-6. The market is in equilibrium. If the government budget deficit rises, which of the following would you expect to see?
A) The budget deficit will have no impact on the quantity of loanable funds demanded by firms. B) The quantity of loanable funds demanded by firms will rise above $120 million. C) The interest rate will fall below 4 percent. D) The quantity of loanable funds demanded by firms will fall below $120 million.
A monopolist's demand curve is the same as the marginal revenue curve for the product
Indicate whether the statement is true or false
Bambi sells apples that she produces up to the equilibrium price of $20 per bushel. Andre sells green beans that he produces up to the equilibrium price of $18 per bushel. If they both sell the same number of bushels, but Andre makes more profit than Bambi, which of the following situations is true?
a. Producer surplus is greater for green beans than apples. b. Producer surplus is less for green beans than apples. c. Producer surplus is the same for green beans and apples. d. Producer surplus is negative for both green beans and apples.
Why do used goods of different qualities often sell for the same price, while used goods of different sizes sell for different prices?
What will be an ideal response?