If the interest rate is positive, the future value of an interest bearing investment is always larger than the present value
What will be an ideal response?
True. FV = PV ? (1 + i)t. If the interest rate is positive, the future value will always be greater than the present value.
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National income is $600, corporate taxes are $20, Social Security contributions are $60, retained earnings are $10, personal taxes are $100, and transfer payments are $80. Disposable income is
A. $450. B. $490. C. $410. D. $510.
The standard of living is measured by
A) employment. B) the population. C) real GDP per person. D) real GDP. E) employment per person.
________ in the domestic interest rate causes the demand for domestic assets to decrease and the domestic currency to ________, everything else held constant
A) An increase; appreciate B) An increase; depreciate C) A decrease; appreciate D) A decrease; depreciate
The demand for a productive resource is
a. demand for the resource itself. b. derived from the demand for the good or service it produces. c. unrelated to the output it produces. d. derived from the demand for the good or service it produces AND demand for the resource itself.