Which expression is used to calculate the present value of an amount of money?
A. Future Value x (1 + interest rate)time
B. Future Value/(1 + interest rate)time
C. Future Value x (1 + time)interest rate
D. (1 + interest rate)time/Future Value
B. Future Value/(1 + interest rate)time
You might also like to view...
"According to the Coase theorem, if Gabriel wants the local television station to cease having helicopters fly over his house at night, he will be more likely to be able to reach an agreement with the station if the property right to the airspace is
clearly defined and the transaction costs of negotiating are high." Is this statement true or false? Explain your answer.
Motivations for behavioral economics include:
A. people sometimes make choices that are inconsistent with standard economic theory. B. all choices made by individuals are consistent with standard economic theory. C. standard economic theory can lead to unreasonable conclusions about consumer welfare. D. people sometimes make choices that are inconsistent with standard economic theory and standard economic theory can lead to unreasonable conclusions about consumer welfare.
The financial system:
A. gathers information about the economy in an effort to inform the public. B. brings together savers and borrowers in a set of interconnected markets where people trade a variety of financial products. C. connects the government to those truly in need of public services. D. is used to help individuals keep track of the general price level.
In principle, households ultimately control:
A. businesses. B. both businesses and the government. C. neither businesses nor the government. D. the government.