Which of the following best expresses the present value of $500 that you have to wait four years and three months to receive?
A. ($500/4.25) × (1+ i)
B. ($500/4) × (1 + i)3
C. $500 × 4.25 × (1 + i)
D. $500/(1 + i)4.25
Answer: D
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Lizzie's budget line is shown in the figure above. If the price of a magazine rises, Lizzie's real income in terms of magazines books ________ and her real income in terms of cookies ________
A) increases; does not change B) decreases; does not change C) decreases; increases D) increases; decreases
The term contagion refers to
A) a government's complete control over it's banking system. B) a drop in interest rates across industrialized countries. C) the vulnerability of healthy economies to crises generated by events elsewhere. D) a directed attack on one market by a foreign market. E) a side effect of international trade.
The demand for money as a cushion against unexpected contingencies is called the
A) transactions motive. B) precautionary motive. C) insurance motive. D) speculative motive.
The following is not a threat to external validity:
A) the experimental sample is not representative of the population of interest. B) the treatment being studied is not representative of the treatment that would be implemented more broadly. C) experimental participants are volunteers. D) partial compliance with the treatment protocol.