What is the present value of $5,000 to be received 10 years from now if the interest rate is 10 percent?
A. $1,927.72.
B. $500.
C. $4,545.45.
D. $12,968.71.
A. $1,927.72.
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Suppose the Federal Reserve buys bonds from the banking system, the money supply curve ________.
A. will become flatter B. will become steeper C. shift to the left D. shift to the right
The rate of unemployment is found by
A) dividing the number unemployed by the number of people in the labor force. B) dividing the number employed by the number of people in the labor force. C) dividing the number unemployed by the number employed. D) dividing the number employed by the number unemployed.
A firm in monopolistic competition has ________ demand curve
A) a downward-sloping B) an upward-sloping C) a vertical D) a horizontal E) a U-shaped
If the nominal interest rate is 4 percent and the anticipated inflation rate is 6 percent, then
A) the real interest rate is -10 percent. B) the real interest rate is 10 percent. C) the real interest rate is -2 percent. D) the real interest rate is 2 percent.