If the interest rate is 10%, the present value of $1 next year is
A) $1.20.
B) $1.10
C) 91 cents.
D) 10 cents.
E) 9 cents.
C
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The low point of economic activity during a business cycle is called the
A) trough. B) recession. C) peak. D) failure.
What is the marginal propensity to consume for the economy described in Scenario 10.1?
a. 0.45 b. 0.85 c. 0.65 d. 0.35 e. Cannot be determined
Falling output, in the short run, could be due to:
A. an increase in short-run aggregate supply. B. a reduction in aggregate demand. C. an increase in long-run aggregate supply. D. an increase in aggregate demand.
A tariff on imports affects foreign suppliers ____; a quota affects foreign suppliers ____.
A. effectively; ineffectively B. haphazardly; carefully C. equally; capriciously D. unfairly; fairly E. unequally; unequally