The present value of the future is

A) not related to the interest rate.
B) inversely related to the interest rate.
C) positively related to the interest rate.
D) equal to economic profit


B

Economics

You might also like to view...

If the value of the marginal product of a worker is $20 and the market price of the good he produces is $5, his marginal product is:

A) 4 units. B) 10 units. C) 25 units. D) 100 units.

Economics

The figure above shows the market for coffee. When the efficient quantity of coffee is produced, the marginal social cost of the last pound is

A) $2.50. B) $3.50. C) $3.00. D) $2.00.

Economics

"In the 1980s the pain which results from a large government deficit was deferred, placed on future taxpayers since foreigners loaned money to the government to pay the debt." Gordon suggests that this "pain" maybe deferred forever if

A) the government uses the "deficit funds" to provide taxpayers increased future benefits from which to pay the interest to foreigners. B) monetary policy is tighter in the future. C) fiscal policy is tighter in the future. D) B and C are correct.

Economics

Suppose the economy is in a recession and the government decides it needs to reduce the budget deficit. Other things equal, this would tend to

A) shift the IS curve to the right. B) shift the IS curve further to the left. C) shift the MP curve further down. D) shift the MP curve up.

Economics