If the interest rate is positive, the present value of $10 to be received in the future is
a. less than $10.
b. equal to $10.
c. more than $10.
d. Any of the above is possible, depending on the interest rate and when the payment is to be received.
a
Economics
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For a firm in monopolistic competition, the efficient scale is the amount of output at which ________ is a minimum
A) fixed cost B) average total cost C) average variable cost D) average fixed cost E) marginal cost
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An increase in the nominal interest rate would
a. encourage people to hold smaller money balances. b. encourage people to hold larger money balances. c. force the Fed to reduce the money supply. d. cause the real interest rate to decline.
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