Which, if any, of the present values below are computed correctly?
a. A payment of $100 to be received one year from today, with a 2 percent interest rate, has a present value of $98.81.
b. A payment of $200 to be received two years from today, with a 3 percent interest rate, has a present value of $188.52.
c. A payment of $300 to be received three years from today, with a 4 percent interest rate, has a present value of $234.34.
d. None of the above are correct to the nearest cent.
b
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Other things remaining the same, if the U.S. interest rate differential increases, the demand curve for U.S. dollars shifts ________ and the supply curve of U.S. dollars shifts ________
A) rightward; rightward B) rightward; leftward C) leftward; rightward D) leftward; leftward
When the economy enters a recessionary phase of the business cycle, unemployment tends to
A) be unchanged. B) increase. C) decrease. D) change in the same direction as the rate of inflation.