The shorter the time until a payment the:
A. higher must be the interest rate.
B. higher the present value.
C. lower the present value because time is valuable.
D. lower must be the interest rate.
Answer: B
You might also like to view...
Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
Rent control is typically imposed ostensibly for the purpose of helping the poor. Why might you be able to argue that few poor people will actually be the beneficiaries of such controls?
What will be an ideal response?
Which of the following describes how a positive externality affects a competitive market?
A) The externality causes a difference between the private benefit from production and the social cost of production. B) The externality causes a difference between the private benefit from consumption and the social benefit. C) The externality causes a difference between the social cost of production and the social cost of consumption. D) The externality causes quantity demanded to exceed quantity supplied.
Refer to Table 9-12. If the actual terms of trade are 1 belt for 1.5 swords and 50 belts are traded, how many swords will Estonia gain compared to the "without trade" numbers?
A) 25 B) 75 C) 100 D) 125