If the interest rate is 5% then the net present value of these cash flows is
a. $6,020.41
b. $7,380.95
c. -$7,380.95
d. $10,000
a
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Refer to Scenario 12.2. Suppose that the marginal cost increases such that:
MC = Q + 10 What is the profit maximizing level of output? A) 171.43 B) 120 C) 150 D) all of the above E) none of the above
Drive with Us is an automobile retailer and pays floor plan financing to finance the cars they hold in inventory. If the interest rate on their floor plan financing increases from 4 to 5 percent, Drive with Us's expected marginal cost from holding additional cars in inventory will shift ________ and the profit-maximizing number of cars to hold in inventory will ________.
A) downward; increase B) upward; increase C) upward; decrease D) downward; decrease
Which of these economic changes was observed during the Great Depression?
a. A fall in the domestic price level leading to an increase in import demand b. A fall in resource prices leading to an increase in aggregate supply c. An increase in unemployment leading to a decrease in the aggregate demand d. An increase in the domestic price level leading to an increase in export demand e. An increase in real GDP leading to an increase in the real interest rate
National saving
a. is the total income in the economy that remains after paying for consumption. b. is the total income in the economy that remains after paying for consumption and government purchases. c. is always greater than investment for a closed economy. d. is equal to private saving minus public saving.