What is the present value of $20,000 that will be paid to you in four years if the interest rate is 10%? Work it out to the nearest cent.
What will be an ideal response?
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Most individuals borrow:
A. using a financial intermediary because it lowers the cost of borrowing. B. using a financial intermediary, but would save money if they financed directly. C. without using financial intermediaries, preferring credit cards. D. directly without the use of a financial intermediary.
In the aggregate expenditures model, an increase in government spending causes a(n):
A. upward shift in the aggregate expenditures curve. B. downward shift in the aggregate expenditures curve. C. leftward movement along the aggregate expenditures curve. D. rightward movement along the aggregate expenditures curve.
The physical and mental effort people use to produce goods and services is a description of which factor of production?
A. physical capital B. human capital C. labor D. entrepreneurship
Suppose an economy’s real GDP is $125 billion in year 1 and $130 billion in year 2. What is the growth rate of its GDP?
What will be an ideal response?