The present value of receiving $200 one year from now when the prevailing rate of interest is 8 percent is

a. $192
b. $185.19
c. $200
d. $208
e. $160

B

Economics

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Which of the following will shift the supply curve of good X rightward?

a) the price of Y, a substitute in production for good X, rises b) an increase in the cost of capital used to produce good X c) an increase in the price of energy d) a decrease in the number of suppliers of good X e) a decrease in the wages of workers employed to produce good X

Economics

What happens when you withdraw cash from a bank?

A) The bank's reserves are reduced. B) The bank's reserves are increased. C) The bank's reserves are not affected. D) The bank's total reserves remain unchanged but the composition of required reserves and excess reserves change.

Economics