Using the annuity rule, we can infer that an increase in the market interest rate from 5 to 10 percent will:
A. not change the present value of an annuity.
B. halve the present value of an annuity.
C. double the present value of an annuity.
D. have an unknown effect on the present value of an annuity.
Answer: B
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A tax on the buyers of personal computer external hard drives encourages
a. sellers to supply a smaller quantity at every price. b. buyers to demand a smaller quantity at every price. c. buyers to demand a larger quantity at every price. d. Both a) and b) are correct.
In calculating the nation’s total output, net exports do not
A. represent exports of goods and services minus imports of goods and services. B. have been a negative number in the last several years. C. would include purchases of U.S.-made automobiles by foreigners minus purchase of foreign-made automobiles by U.S. residents. D. have been positive since global trade as expanded.
Refer to the graph above. Which of the following factors will shift AS 1 to AS 2?
An increase in input prices A decrease in business taxes An increase in real interest rates A decrease in business subsidies
In June 2017, the Federal Open Market Committee raised the target for the federal funds rate to a range of 1.00 to 1.25 percent. To keep the federal funds rate in this target band, the Fed set the interest rate it pays on bank reserves to
A) 1.00 percent. B) 1.125 percent, the mid-point of the target range. C) 1.25 percent. D) 2.25 percent.