When the Fed makes bonds more or less attractive, it influences the:
A. Open market decision.
B. Money multiplier.
C. Portfolio decision.
D. Reserve decision.
C. Portfolio decision.
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The present value of $300 received 5 years in the future would be calculated as which of the following when the interest rate is 5%?
A) 300/(1.5)5 B) 5.05/300 C) 300/(1.05)5 D) 300 × 1.5 × 5
If the demand for pizza increases, then as a result, it is highly likely that the demand for:
A. chicken nuggets will fall. B. soda will increase. C. mozzarella cheese will increase. D. All of these are a likely result.
Sound career decision-making involves
What will be an ideal response?
When the interest rate falls,
A. the opportunity cost of holding money rises. B. people shift out of holding interest-yielding bonds into holding money. C. the quantity of money people will hold decreases. D. investment spending decreases.