If a payment received two years from now has a present value of $200 and the annual interest rate on the payment is 5 percent, then the future value of the payment is:
A. $220.50.
B. $210.50.
C. $190.50.
D. $171.50.
Answer: A
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A domestic currency devaluation would generally lead to:
(a) Increased exports in the domestic economy. (b) Increased imports from a foreign economy. (c) Increase in government spending. (d) None of the above.
Which of the following is not a reason why the labor market experiences job turnover?
A. Workers differ in their abilities. B. Workers might want to change jobs after accumulating general training or education. C. Economic conditions can dictate that a firm reduce its number of workers. D. Firms differ in their amenities and working conditions. E. All of these are reasons why the labor market can experience job turnover.
With respect to controlling the money supply, the law requires the Fed to take orders from:
A. the President. B. the Speaker of the House. C. the Secretary of the Treasury. D. no one?the Fed is an independent agency.