The present value of any future sum of money is the amount that would be needed today, at current interest rates, to produce that future sum
a. True
b. False
Indicate whether the statement is true or false
True
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If Greece chose to abandon the euro and the Greek government decided to exchange euro bank deposits for drachmas, the affected bank depositors would suffer losses if the
A) euro then appreciated. B) euro then depreciated. C) drachma then appreciated. D) drachma then depreciated.
Suppose Bob owns two factories that are located several hundred miles apart. Bob decides to manage one of the plants himself, and he hires another person to manage the second plant
For purposes of operating the second plant, who is the agent and who is principal? A) Bob is the agent and the manager is the principal. B) Bob is the principal and the manager is Bob's agent. C) Both Bob and the manager are principals. D) We need more information to determine the identities of the principal and the agent in this case.
Economists study perfect competition
a. because many markets are perfectly competitive. b. for its descriptive realism. c. to establish a benchmark by which to measure the performance of the economy. d. All of the above are correct.
Asymmetric information involves:
a. information overload in the loan market. b. information that is available on the Web. c. use of the Federal Reserve information system. d. an inequality of information in the loan market.