Which scenario has a higher present discounted value (assume interest is compounded annually); $100 received in 3 years if the interest rate is 8% or $90 received in 2 years if the interest rate is 7.25%?

Which of the following is a major problem with deflation?

A) Money loses value so rapidly that economic agents will be reluctant to hold money. B) Economic agents tend to put off purchases in anticipation of lower prices for goods and services, leading to a downward spiral in economic activity. C) Low prices for goods and services tend to result in massive shortages in most markets. D) Money supply cannot keep pace with consumption spending.

According to Brinley Thomas, the inflows of immigrants to the U.S. in the late-19th and early 20th centuries

a. caused simultaneous growth surges in the U.S. and Europe. b. caused growth surges in the U.S. to coincide with slowed growth in Europe. c. hampered the growth of both the U.S. and Europe. d. had no systematic impact on growth patterns in the U.S. or Europe.