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

Economics

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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.

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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

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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.

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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

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