Present value:
A. is how much an amount of money obtained in the future is worth today.
B. does not account for inflation.
C. is always greater than the future value of money.
D. All of these statements are true.
Answer: A
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One suggested method of reducing excessive risk-taking by SIFIs is to require them to hold ________ capital when credit is expanding rapidly and ________ capital when credit is contracting
A) less; more B) more; no C) more; less D) less; no
One of the ugly stepsisters argues that she, rather than Cinderella, should go to the ball because she will derive more utility from it than Cinderella. An economist would: a. agree, since the ugly stepsister's reasoning is sound
b. want to know how much utility each will receive from attending the ball in order to determine which woman should attend. c. point out that making interpersonal utility comparisons is not possible. d. ask how many balls each woman has attended in order to calculate the marginal utility that each would derive from attending, and then decide who should go to the ball.
Rising healthcare costs are attributable to
A. reliance on expensive technology to support and prolong life. B. people living longer and desiring more care. C. third-party financing of healthcare costs. D. all of these.
If demand is unit elastic and the labor supply is ________, the payroll tax is borne mostly by the employee.
A. unit elastic B. very inelastic C. very elastic D. perfectly elastic