At which interest rate is the present value of $35.00 two years from today equal to about $30.00 today?
a. 5 percent
b. 6 percent
c. 7 percent
d. 8 percent
d
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If planned aggregate expenditure equals GDP, the economy is in macroeconomic equilibrium
Indicate whether the statement is true or false
A firm currently has 5 workers each paid $15 per hour. If it decides to hire a 6th worker, the hourly wage increases to $18 for all workers. The 6th worker is expected to contribute to around $40 worth of output. Based on this information, the firm should
a. Hire the 6th worker since MR>MC
b. Not hire the 6th worker since MR>MC
c. Not hire the workers since MR
Economist David Ricardo argued that rent
a. is unethical b. would be higher if the country opened its doors to international trade c. determines the value of the goods produced with the asset d. depends on price and not, as commonly thought, price depends on rent e. can only be earned on land
In the 1990s, the rising value of the U.S. dollar made imported goods cheaper and this shifted the
a. aggregate demand curve outward. b. aggregate supply curve inward. c. aggregate supply curve outward. d. total expenditures curve upward.