Answer the following statement(s) true (T) or false (F)
1. If the real interest rate is 5% and the inflation rate is 3% then the real growth rate in your purchasing power is 8%. profit maximizing company will choose to undertake the project.
2. If a project costs $2000 up front and generates revenues of $500 per year for ten years, then any
3. The higher the interest rate, the higher the price of a bond.
4. If a bond with face value $100 sells for $75, then we say that the bond is selling for a discount of 25%.
1. False
2. False
3. False
4. False
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Suppose a consumer is spending his or her entire budget. In order to obtain the most satisfaction from his or her purchases, all goods should:
a. provide the same marginal utility per dollar. b. be consumed in equal quantities. c. have identical marginal utilities. d. give the consumer matching amounts of total utility.
In Figure 13-3, according to economic theory, the kink in the demand curve will occur at point
A. E. B. A. C. C. D. D.
In general, __________ a higher rate of return for a given level of risk than ____________ can offer.
A. a portfolio has; individual assets B. individual assets have; a portfolio C. a portfolio has; any other type of saving D. any other type of saving has; a portfolio
The salaries of college professors are partly determined by the demand for college education
a. True b. False Indicate whether the statement is true or false