The greater the interest rate
A. the greater the opportunity cost of another dollar of current consumption.
B. the greater the present value of a sum to be received a year in the future.
C. the lower the discount rate.
D. the less a dollar invested today will be worth a year from now.
Answer: A
You might also like to view...
Couples marrying at younger ages in colonial America than in Europe contributed to the relatively higher birth rates
Indicate whether the statement is true or false
The multiplier principle explains how
A. any change in the economy has a one-time impact. B. $1 invested will increase GDP by more than $1. C. expenditures and incomes decrease as investment increases. D. $1 invested will decrease GDP by less than $1.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4Refer to Figure 2.4. The economy moves from Point A to Point D. This could be explained by
A. an increase in economic growth. B. a change in society's preferences for motorcycles versus hybrid cars. C. a reduction in unemployment. D. an improvement in technology.
Assume the demand for coffee increases and the supply of coffee decreases. Which of the following outcomes is certain to occur?
A. The equilibrium price of coffee will fall. B. The equilibrium price of coffee will rise. C. The equilibrium quantity of coffee will fall. D. The equilibrium quantity of coffee will rise.