If the annual interest rate is 5 percent,
A) $100 saved today will be worth $105 after one year
B) $90 saved today will be worth $100 after one year
C) $100 saved today will be worth $5 after one year
D) $99 saved today will be worth $100 after one year
E) $100 saved today will be worth $1, 000 after one year
Correct Answer:
Verified
Q32: The reward for forgoing present consumption is
A)rent
B)profit
C)roundabout
Q33: If Arnold has a positive rate of
Q34: Which of the following does not reflect
Q35: The interest rate compensates
A)bankers for their time
Q36: Interest is a payment for deferred
A)taxation
B)saving
C)consumption
D)investment
E)none of
Q38: A positive rate of time preference means
Q39: If the annual interest rate is 4
Q40: By saving, households
A)are supplying loanable funds
B)are demanding
Q41: Exhibit 13-2 Q42: If a firm can borrow or lend
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