Assume the current interest rate is 25%. The present value of $1,000 in one year would be
A. $180.
B. $450.
C. $750.
D. $800.
Answer: D
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The U.S.—Colombia Trade Promotion Agreement was signed on November 22, 2006, in Washington, D.C. This comprehensive trade agreement eliminated tariffs and other barriers to goods and services
Colombia will immediately eliminate tariffs on wheat, barley, peanuts, and many other products in which Columbia does not have a comparative advantage. This policy means that the price of peanuts in Columbia will become A) equal to the free trade price. B) lower than the free trade price. C) higher than the price when a tariff was in place. D) higher than the free trade price.
In a certain economy, the components of aggregate spending are given by: C = 500 + 0.8(Y - T) - 300rI = 200 - 400rG = 200NX = 10T = 150 Given the information about the economy above, what is the short-run equilibrium output if the real interest rate is 4 percent?
A. 1,372 B. 3,810 C. 3,860 D. 762
Referring to the table above, if consumption in period one is $20,000, then consumption in period two cannot be greater than ________
A) $52,800 B) $50,400 C) $49,600 D) $50,000
One reason stagflation is difficult to recover from is because:
A. less output requires less inputs to be hired. B. prices tend to adjust more quickly downward than upward. C. wages are sticky downward. D. input prices increase with output prices.