What is the present value of $1,000 to be received in two years if the current market interest rate is 8.0%?
a. $481
b. $556
c. $857
d. $926
c
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In a business cycle, the period following a trough is called an expansion
Indicate whether the statement is true or false
The principle of comparative advantage implies that
A) only wealthy countries ultimately can benefit from international trade. B) every country can benefit from international trade. C) we should limit the extent to which people specialize. D) most people are harmed by trade.
If the price level rises, what will happen to the demand for reserves?
A. It will shift outward. B. It will shift inward. C. It will remain unchanged. D. It depends on what happens to interest rates.
Suddenly large number of tourists from Brazil start coming to Florida. What will this do to the U.S. exchange rate between the U.S. dollar and the Brazilian peso?
a. The U.S. dollar’s exchange rate will appreciate. b. The U.S. dollar’s exchange rate will depreciate. c. The Brazilian peso will appreciate. d. The exchange rates will not change.