At an interest rate of 5 percent, the present value of $1,000 to be received two years from today is
A) less than $875.
B) between $875 and $925.
C) between $925 and $975.
D) more than $975.
B
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Through correspondent banking, large banks provide services to small banks, including
A) loan guarantees. B) foreign exchange transactions. C) issuing stock. D) debt reduction.
The above figure shows the short run cost curves for a typical firm in a competitive market. If price = 8, then the firm
A) is earning positive profits. B) should produce 50 units. C) should shut down. D) None of above.
If the price of a certain brand of sneakers falls from $27.50 to $22.50, and the quantity demanded by consumers increases from 15 to 25 pairs per week, then the price elasticity of demand is
a. 0.25 b. 1.00 c. 2.75 d. 1.50 e. 2.50
The decision of which assumptions to make is
a. an easy decision for an economist, but a difficult decision for a physicist or a chemist. b. not a particularly important decision for an economist. c. usually regarded as an art in scientific thinking. d. usually regarded as the easiest part of the scientific method.