The present value of a sum of money to be received in future is high if ________
A) the money is invested for a long period of time
B) the market rate of interest is low
C) the rate of inflation is high
D) the future payment is low
B
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In the long run, the real interest rate is 3 percent, real GDP grows at 4 percent, velocity is constant, and the quantity of money grows at 8 percent. The nominal interest rate is
A) 7 percent. B) 12 percent. C) 10 percent. D) 8 percent. E) 6 percent.
A consumer equilibrium is depicted using indifference curve analysis as: a. the point where two indifference curves cross
b. the combination of two goods that minimizes total utility for a given level of income. c. the combination of two goods located where the highest attainable indifference curve is just tangent to the budget line. d. any combination of two goods where an indifference curve crosses the budget line.