If you own a perpetuity of $100 and if the discount rate is 5 percent, then its present value
a. cannot be determined unless we know the number of years
b. is $95.21
c. is $105
d. is $2,000
e. is infinite
D
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If it costs Sinclair $300 to produce 3 suede jackets and $420 to produce 4 suede jackets, then the difference of $120 is the marginal cost of producing the 4th suede jacket
Indicate whether the statement is true or false
What name is given to the plant and equipment used by firms in production?
A. Production function B. Physical capital C. Productivity D. Aggregate production function
The dollar has depreciated if it buys less of a foreign currency.
a. True
b. False
Indicate whether the statement is true or false
Based on the information in the table, what quantity of reserves did the Federal Reserve inject into the economy in 1932? Currency held by public (in billions)Reserve-deposit ratioBank reserves (in billions)Money supply (in billions)December 1931$4.590.095$3.11$37.3December 1932$4.820.109$3.18$34.0
A. $0.07 billion B. $0.23 billion C. $0.16 billion D. $0.30 billion