The present value of a payment to be made in the future falls as
a. the interest rate rises and the time until the payment is made increases.
b. the interest rate rises and the time until the payment is made decreases.
c. the interest rate falls and the time until the payment is made increases.
d. the interest rate falls and the time until the payment is made decreases.
a
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Refer to the scenario above. What will be the future value of the deposit after 3 years?
A) $9,822.63 B) $9,964.21 C) $10,077.70 D) $10,220.98
If immigrant workers are complementary to native workers, then
A. native workers will be better off with open borders. B. immigrant workers will receive a higher wage than native workers. C. immigration will shift the demand for native labor to the left. D. each firm will hire only immigrants or only natives but not a mixture of the two. E. very few immigrants will find jobs.
International trade and money flows can increase aggregate supply and aggregate demand if
A. Tariffs are increased. B. Trade barriers are reduced. C. Quotas are increased. D. Trade barriers are increased.
The collapse of the subprime mortgage market increased the spread between Baa and default-free U.S. Treasury bonds. This is due to
A) a reduction in risk. B) a reduction in maturity. C) a flight to quality. D) a flight to liquidity.