Question 3

If the future value of money is less than the expected revenue generated, the loan

a.is more attractive for investors.

b.will provide less return on investment.

c.is more attractive for lenders.

d.will eventually pay for itself.

e.is less attractive for investors.

Question 5

If you save $1,200 at 6% this year, next year your money will be worth

a.$1,272.

b.$1,290.

c.$1,722.

d.$1,920.

e.$7,200.

Question 8

Velocity is

a.another term for the money multiplier.

b.equivalent to real GDP.

c.equivalent to the price level.

d.equivalent to nominal GDP.

e.the number of times the average dollar is spent in a year.

Question 9

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