With a nominal interest rate of 5%, the present discounted value of $100 to be received in one year is
A) $90.91.
B) $95.23.
C) $181.82.
D) $190.00.
E) $220.00.
B
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Refer to Table 2-14. If the two countries specialize and trade, who should export guitars?
A) They should both be exporting guitars. B) Ireland C) There is no basis for trade between the two countries. D) Scotland
Exhibit 5-6 Demand curve for concert tickets
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In Exhibit 5-6, if promoters lower their ticket price from $30 to $20, then:
A. ticket sales will increase but total revenue will decrease because demand is inelastic between $30 and $20. B. both ticket sales and total revenue will increase because demand is inelastic between $30 and $20. C. ticket sales will decrease but total revenue will increase because demand is elastic between $30 and $20. D. both ticket sales and total revenue will increase because demand is elastic between $30 and $20.
If the velocity of money is increasing, but the money supply is not, it is likely the economy is experiencing:
A. inflation. B. growth. C. deflation. D. a trade deficit.
Is the national debt a burden to future generations?
A. No, as long as foreigners own a significant share of the national debt. B. No, as long as the national debt is owned purely by U.S. citizens. C. Yes, debt is always a burden to future generations. D. Yes, unless foreigners increase their share of the national debt.