Refer to the scenario above. What is the present value of $3,400 to be received after five years?
A) $2,300.78
B) $2,540.68
C) $3,200.22
D) $3,526.44
B
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The price of a stock is equal to the present value of expected future dividend payments from the stock
Indicate whether the statement is true or false
Everything else held constant, in the market for reserves, when the federal funds rate is 3%, raising the discount rate from 5% to 6%
A) lowers the federal funds rate. B) raises the federal funds rate. C) has no effect on the federal funds rate. D) has an indeterminate effect on the federal funds rate.
Perfect planting and harvesting weather results in a record high crop of wheat. If wheat growers experience an increase in total sales revenue, then the demand for wheat must be
a. price-inelastic b. unitary elastic c. perfectly inelastic d. price-elastic e. perfectly elastic
In an administrative command economy, a price below equilibrium
a. means we can buy cheap goods freely b. creates opportunities for corruption c. does not matter at all d. both a and b are correct e. none of the above