The present value of 1 payable in two years is a. 1. b. 1/(1 + ...

[nummyann]

The present value of 1 payable in two years is
 a. 1.
  b. 1/(1 + 2r).
  c. 1/(1  2r).
  d. 1/(1 + r)2.

Question 2

An increase in the corporate profits tax will most likely lead to
 a. a decrease in the rental rate of capital in the corporate sector.
  b. no change in the rental rate of capital in the corporate sector.
  c. no change in the rental rate of capital in the non-corporate sector.
  d. an increase in the rental rate of capital in the corporate sector.

[sierramartinez]

Answer to Question 1

d

Answer to Question 2

d