If the annual interest rate remains unchanged over the next two years, and the present value of $120 to be received one year from now is $100, what will $100 be worth two years from now?
A) $120
B) $140
C) $144
D) Uncertain. We need to know the interest rate.
C
You might also like to view...
Points on the same utility curve are
A. points where the person is indifferent between bundles on the line. B. points where utility is maximized. C. never possible. D. known as "points of light."
Refer to Figure 13.1. All else equal, an increase in transfer payments would best be represented by a movement from
A) point A to point B. B) point B to point A. C) point B to point C. D) point C to point B.
When the economy experiences a bust, the government knows exactly which policies will spur an economic recovery
a. True b. False Indicate whether the statement is true or false
Real wages in the United States tend to rise at the same rate as
a. prices. b. tax rates. c. average productivity levels. d. inflation.