If the interest rate is 8 percent, then what is the present value of $5,000 to be received in ten years?
The present value is $2,315.97.
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If a country had a nominal GDP of $800 million, and the GDP Deflator was 95, what is the real GDP?
a. $750 million b. $828 million c. $950 million d. $842 million
If a binding price ceiling is imposed on the baby formula market, then
a. the quantity of baby formula demanded will increase. b. the quantity of baby formula supplied will decrease. c. a shortage of baby formula will develop. d. All of the above are correct.
The impact of monetary policy through exchange rates tends to ________ the impact of monetary policy through real interest rates.
A. totally negate B. reinforce C. contradict D. be exactly the same as
Which of the following would be most appropriate if the Federal Reserve wanted to increase the money supply in order to stimulate the economy?
A. Buy U.S. government securities. B. Force the Treasury to reduce the national debt. C. Raise the discount rate. D. Increase the reserve requirements.