What is the real (adjusted for inflation) present value of $104.25 that you could receive one year from now, given that the rate of interest is 4.25 percent and the anticipated rate of inflation is 1 percent?
A) $99.05
B) $100.97
C) $107.64
D) $100.00
Answer: B
You might also like to view...
If the social cost of producing a good exceeds the private cost,
A) a negative externality exists. B) no externalities exist. C) a positive externality exists. D) the market is efficient.
The demand curve faced by a dominant firm in an oligopoly model is the difference between the market demand and the supply that the fringe will produce at each price
Indicate whether the statement is true or false
Which of the following is a difference between a binding and a not binding price floor?
a. A binding price floor causes a surplus in the market, while a not binding price floor causes a shortage in the market. b. A binding price floor causes a surplus in the market, while a not binding price floor has no impact on the market forces. c. A binding price floor causes a shortage in the market, while a not binding price floor has no impact on the market forces. d. A binding price floor causes a shortage in the market, while a not binding price floor causes a surplus in the market.
GoodPrice Increase Last YearAmusement park tickets5.0%Bowling balls4.2%Camouflage neckties3.1% Refer to Table 8.1, which gives hypothetical data on price changes for three goods. Which good(s) became relatively more expensive for buyers?
A. All three goods became relatively more expensive. B. None of the goods became relatively more expensive. C. Only amusement park tickets became relatively more expensive. D. It depends on the overall rate of inflation in the economy.