« previous next »

Author Question: Changes in future expected interest rates can affect current consumption. Suppose individuals expect ... (Read 57 times)

natalie2426

  • Hero Member
  • *****
  • Posts: 524
on: Jun 30, 2018
Changes in future expected interest rates can affect current consumption. Suppose individuals expect future interest rates to decrease. Consumption will change as a result of this lower expected future interest rate because of its effects on which of the following?
 
  A) human wealth
  B) the value of stocks
  C) the value of bonds
  D) all of the above
  E) none of the above

Question 2

With a nominal interest rate of 5, the present discounted value of 100 to be received in one year is
 
  A) 90.91.
  B) 95.23.
  C) 181.82.
  D) 190.00.
  E) 220.00.


connor417

  • Sr. Member
  • ****
  • Posts: 329
Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Glaucoma is a leading cause of blindness. As of yet, there is no cure. Everyone is at risk, and there may be no warning signs. It is six to eight times more common in African Americans than in whites. The best and most effective way to detect glaucoma is to receive a dilated eye examination.

Did you know?

Approximately 15–25% of recognized pregnancies end in miscarriage. However, many miscarriages often occur before a woman even knows she is pregnant.

Did you know?

Fungal nail infections account for up to 30% of all skin infections. They affect 5% of the general population—mostly people over the age of 70.

Did you know?

On average, the stomach produces 2 L of hydrochloric acid per day.

Did you know?

The B-complex vitamins and vitamin C are not stored in the body and must be replaced each day.

Infant Mortality Rates Worldwide Infant Mortality Rates Worldwide
Part A - Calculating the expected number of each phenotype Part A - Calculating the expected number of each phenotype
A comparison of adiabatic and environmental cooling rates. A comparison of adiabatic and environmental cooling rates.
A mobile weather station that can be used to gather current weather data at the scene of hazardous ... A mobile weather station that can be used to gather current weather data at the scene of hazardous ...
Industrialized nations consumption Industrialized nations consumption
The level of future emissions is closely linked to the rate of population growth The level of future emissions is closely linked to the rate of population growth
Video: Anatomy and Chemical Makeup of a Single Hair (Animation)

For a complete list of videos, visit our video library