The present value of an asset and the rate of interest
a. are not related
b. are related inversely
c. cannot change in opposite directions
d. are equivalent
e. are directly related
B
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In the figure above, the demand curve shifts rightward from D0 to D1 so that D1 is the relevant demand curve. Suppose the government imposes a rent ceiling of $300 per month. In the short run there will be
A) a shortage of 500,000 apartments. B) a shortage of 400,000 apartments. C) a shortage of 200,000 apartments. D) no shortage nor a surplus of apartments.
Suppose that the economy is in equilibrium at an income level of $2,000 when Ii = $200, and that the MPC = .75 . If Ii falls by $50, the equilibrium level of income will fall by
a. $50 b. $100 c. $200 d. $250 e. $400
How does technology relate to a seller’s input prices?
a. An efficient technology can often lower input prices. b. An efficient technology can often raise input prices. c. An inefficient technology can often lower input prices. d. An inefficient technology can often eliminate input prices.
Profits for the monopolistically competitive firm depicted in Figure 8.1:
A. will increase in the long run. B. will not change in the long run. C. will decrease in the long run. D. are impossible to predict in the long run.