Which of the following best expresses the payment a lender receives for lending money for three years?
A. PV/(1 + i)3
B. 3PV
C. FV/ (1 + i)3
D. PV/(1+i)3
Answer: D
Economics
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A bakery can produce either cakes or cookies. If the price of cookies rises, then
A) the supply curve of cake shifts leftward. B) the supply curve of cake shifts rightward. C) there is a movement downward along the supply curve of cakes. D) there is a movement upward along the supply curve of cakes.
Economics
Isabella is participating in a first-price sealed-bid auction for a house. If there are 5 other bidders and her maximum willingness to pay for the house is $60,000, what is her optimal bidding strategy?
What will be an ideal response?
Economics