If an individual wins a multimillion dollar lottery and chooses to receive annual payments equaling the total prize, this person has a
A) relatively low discount rate.
B) relatively high discount rate.
C) discount rate of zero.
D) It is impossible to tell.
C
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Under a gold standard, a balance of payments deficit automatically
A. raised interest rates. B. decreased exports. C. increased domestic prices. D. increased imports.
The ________ of the 1968 tax surcharge led to the prominence of the developer of the permanent-income hypothesis that predicted it, ________
A) success, Walter Heller B) success, Milton Friedman C) failure, Walter Heller D) failure, Milton Friedman
The business cycle matters for unemployment because:
A. it affects the demand for labor. B. it affects the supply of labor. C. Both of these are true. D. Neither of these is true.
After much success during the 1970s, the OPEC cartel saw the price of oil and the revenues of its members decline during the 1980s due, in part, to
a. the low elasticity of demand for oil in the short run b. the large number of buyers from each member nation c. surging demand for oil in the early 1980s d. publicity concerning the prices negotiated with each member e. the greater long-run elasticity of demand for oil