The net present value of $1,000 received at a time in the future would
a. decline if the $1,000 were received sooner.
b. increase if the delivery date for the $1,000 were set farther into the future.
c. increase if the interest rate rose.
d. increase if the interest rate fell.
D
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PPP-adjustment involves:
A. recalculating a variable like GDP per capita so we can compare someone's standard of living across countries. B. a method very similar to adjusting to cost-of-living increases using a price index like the CPI. C. recalculating economic statistics to account for differences in price levels across countries. D. All of these statements are true.
Christy and Claudia are aspiring models. Talent scouts consider them to be similarly beautiful. Both enter a talent show. Claudia contracts food poisoning the night before the competition and withdraws. Christy wins the competition and signs a multi-million dollar contract. The differences in their earnings likely reflect
a. discrimination. b. differences in human capital. c. differences in signaling. d. chance.
The figure below shows the market for computers in a small importing country. Dd and Sd are the domestic demand and supply curves of computers, respectively.
The consumption effect of the tariff on computers is worth
A. $76 million. B. $78 million. C. $2 million. D. $4 million.
Growth in Latin America in the 1970s was largely fueled by
A) monetary expansion. B) government spending. C) export growth. D) capital inflows.