If the interest rate were 10 percent, the net present value of $100 to be received one year from now would be
a. $90.
b. $90.91.
c. $100.
d. $110.
B
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Advocates of real business cycle theories argue that all of the following could cause a recession except
a. a fall in consumer expectations. b. natural disasters. c. higher taxation. d. increases in the price of oil.
Stagflation can be explained by a
a. shift in the short run Phillips curve to the left. b. shift in the short run Phillips curve to the right. c. a movement along the short run Phillips curve to the right. d. a movement along the short run Phillips curve to the left.
Sales taxes are
A) assessed on the prices paid on a large set of goods and services. B) levied on purchases of a particular good or service. C) based on each individual taxpayer's income level. D) collected only by the U.S. government.
Which of the following explains why economists may disagree over normative issues?
a. They have different beliefs and values. b. They examine the same data to draw their conclusions. c. They need to disagree in order to publish their research findings. d. They often employ different statistical techniques when examining data. e. Some work only on microeconomic issues, while others focus exclusively on macroeconomic issues.