$1 received n years from now has a value today of
A) ($1 + i)/i.
B) $1/(1 + i).
C) ($1 + i /i.
D) $1/(1 + i .
D
Economics
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An increase in the discount rate ________ bank reserves and ________ the money supply if banks with outstanding loans are encouraged to pay them back more quickly
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
Economics
If the nominal money supply grows 10%, the inflation rate is 6%, and the income elasticity of money demand is 1.0, then real income growth equals
A) 1%. B) 2%. C) 3%. D) 4%.
Economics