Studies of NAFTA have concluded that increases in the variety of U.S. imports from Mexico are equivalent to about a ________ per year reduction in Mexican import prices.

The federal funds rate is determined

A) by the Board of Governors. B) by the supply and demand for bank reserves. C) directly by households' and firms' demands for funds. D) by the federal government.

Assuming a market rate of interest equal to 7 percent, what is the present value of $200 to be received one year from today?

A) $123 B) $156 C) $187 D) $210