The present value of $1 million to be received 10 years from now will
a. decrease if the interest rate rises.
b. be greater if the funds were going to be received 15 years from now.
c. be greater than $1 million.
d. increase if the interest rate were to rise from 4 percent to 8 percent.
A
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At any given time, which factor of production is NOT fixed?
A) labor B) technology C) entrepreneurship D) land E) money
A larger crowding-out effect:
a. increases the magnitude of a given fiscal policy's effect on interest rates and increases the magnitude of its effects on investment. b. increases the magnitude of a given fiscal policy's effect on interest rates and decreases the magnitude of its effects on investment. c. decreases the magnitude of a given fiscal policy's effect on interest rates and increases the magnitude of its effects on investment. d. decreases the magnitude of a given fiscal policy's effect on interest rates and decreases the magnitude of its effects on investment.
Governments in market economies usually have significant control over
A. investment spending. B. personal consumption spending. C. import spending. D. education spending.
Refer to the above figure. Profits for this firm are
A. negative. B. zero. C. positive. D. undetermined without more information.