Assuming a market rate of interest equal to 7 percent and anticipated inflation is 2 percent, what is the real (adjusted for inflation) present value of $200 to be received one year from today?
A) $190
B) $214
C) $187
D) $210
A
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The Hirschman-Herfindahl index (HHI) in an industry is 50. A merger is proposed that will raise the HHI to 100. In this case, the
A) Sherman Act will prohibit the merger. B) Federal Trade Commission will challenge the merger. C) Federal Trade Commission will not challenge the merger. D) rule of reason will prevent the merger if it represents a horizontal merger.
If the price of the Brazilian real is 60 cents and a U.S. resident purchases a Brazilian-manufactured item for 60,000 real, there will be
A) a quantity demanded of 60,000 real and a quantity supplied of $60,000. B) a quantity demanded of 60,000 real and a quantity supplied of $36,000. C) a quantity demanded of 60,000 real, but we cannot determine the effect in the market for dollars. D) a quantity supplied of 60,000 real and a quantity demanded of 60,000 yen.
If the government pays a per-unit subsidy to the producer of a service, we would expect to see a(n)
I. increase in the quantity demanded. II. decrease in the out-of-pocket price paid by consumers. III. increase in the quantity supplied by producers. A) I only B) both I and II only C) both II and III only D) I, II, and III
Change in "total factor productivity" may be explained by
A) the relative rates of growth of crime and pollution control measures. B) changes in the quality and composition of the labor force. C) changes in the scale of production. D) All of the above.