What is the present value of $104.25 that you could receive one year from now, given that the rate of interest is 4.25 percent?
A) $108.50
B) $0.00
C) $4.25
D) $100.00
Answer: D
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The more inelastic the demand for a product, the more the actual burden of a tax on the product will:
a. fall on sellers. b. fall on buyers. c. fall equally on both buyers and sellers. d. create a larger deadweight loss (or excess burden).
When price level in the United States rises,
a. there is a increased demand for borrowed money. b. producers' demand for new machinery increases, contributing to an increase in aggregate demand. c. Americans tend to buy more foreign goods and services. d. the French, Canadians, and Japanese would find our exports more attractive. e. to replenish the value of your real wealth, you would save less and consume more.
Why do most economists favor emissions taxes over direct controls as a pollution deterrent?
What will be an ideal response?
What is the underlying assumption of the original, simplified Keynesian model?
A. The relevant range of the aggregate supply curve (AS) is vertical. B. The relevant range of the short-run aggregate supply curve (SRAS) is horizontal. C. The relevant range of the long-run aggregate supply curve (LRAS) is horizontal. D. The relevant range of the short-run aggregate supply curve (SRAS) is vertical.