The present discounted value of a future payment can be calculated using which of the following formulas?
A. (Current payment) ÷ [(1 + Interest rate) N].
B. (Future payment) ÷ [(1 + Interest rate) N].
C. [(1 + Interest rate) N] ÷ (Future payment).
D. [(1 + Interest rate) N] ÷ (Current payment).
Answer: B
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When crowding out occurs in an economy, it can reduce expenditures for
A. business investments. B. both consumer purchases and business investments. C. consumer purchases. D. government purchases.
"Price discrimination is the same as price differentiation." Do you agree or disagree? Why?
What will be an ideal response?
Ashley recently got a 15 percent raise. She now purchases 7.5 percent more coffee. Ashley's income elasticity for coffee is
a. 0.5. b. 0.75. c. 1.5 d. 2.
If the consumption schedule is linear, then the:
A. saving schedule will also be linear.
B. MPS will decline as income rises.
C. MPC will decline as income rises.
D. APC will be constant at all levels of income.