Net Present Value measures the
a. total value of profits over the life of an investment
b. discounted value of profits over the life of an investment
c. discounted value of revenues over the life of an investment
d. interest rate paid on funds borrowed for an investment
e. none of the above
B
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Raising the tax rate lowers the tax-adjusted MPC
Indicate whether the statement is true or false
In every economic system, choices must be made because resources
A) are unlimited, but human desires and wants are limited. B) are limited, but human desires and wants are unlimited. C) are unlimited, and so are human desires and wants. D) are limited, and so are human desires and wants.
Suppose that the price elasticity of demand for a product is -1 and that the price elasticity of supply is +1 . Assume also that the income elasticity of demand is +2 . Then an increase in income of 10% will raise equilibrium price by:
a. 10%. b. 5%. c. 20%. d. an annual amount that cannot be determined.
What function is money serving when you use it when you go shopping?
A medium of exchange A store of value A medium of deferred payment A unit of account