The greater the interest rate
A) the greater the present value of a sum to be received a year in the future.
B) the greater the opportunity cost of another dollar of current consumption.
C) the more a dollar invested today will be worth a year from now.
D) the lower the discount rate.
B
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Discretionary fiscal policy is so named because it
A) is undertaken at the order of the nation's central bank. B) involves specific changes in taxes and government spending undertaken by Congress and the president. C) occurs automatically as the nation's level of GDP changes. D) involves secret advice given by the Council of Economic Advisers to the president.
Dell lowers the price of their PCs by 10 percent. As a result, the quantity of Gateway computers demanded at the current price decreases by 12 percent
What is the cross elasticity of demand for Gateway computers with respect to the price of Dell computers? A) -1.20 B) -0.83 C) 1.20 D) 0.83
In Porter's Five Competitive Forces model, "competition from substitute goods or services" refers to
A) substitute products that come from outside the industry. B) substitute products that come from foreign competitors in the same industry. C) substitute products that come from domestic competitors in the same industry. D) competition from producers of substitutes who outsource their production.
Which of the following statements best describes the expected pattern of trade imbalances?
a. The expected pattern of trade imbalances in the world economy has been that low-income economies will run trade surpluses, while middle and high-income economies will run trade deficits. b. The expected pattern of trade imbalances in the world economy has been that low and middle-income economies will run trade surpluses, while high-income economies will run trade deficits. c. The expected pattern of trade imbalances in the world economy has been that high-income economies will run trade surpluses, while low- and middle-income economies will run trade deficits. d. The expected pattern of trade imbalances in the world economy has been that low and high-income economies will run trade surpluses, while middle-income economies will run trade deficits.