Present bias occurs because there is a mismatch in the timing of benefits and costs.
Answer the following statement true (T) or false (F)
True
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Raising funds through financial intermediaries is called
A) indirect finance. B) dividend reinvestment. C) direct finance. D) corporate finance.
If buyers expect the price of a good to fall in the near future, we would expect that to cause the current price and the quantity traded to increase as a result
a. True b. False Indicate whether the statement is true or false
Although lawmakers legislated a fifty-fifty division of the payment of the FICA tax,
a. the actual tax incidence is unaffected by the legislated tax incidence. b. the employer now is required by law to pay more than 50 percent of the tax. c. the employee now is required by law to pay more than 50 percent of the tax. d. employers are no longer required by law to pay any portion of the tax.
What will happen if speculators believe that the relative price of the U.S. dollar is going to rise?
a. They will buy more euros causing the U.S. dollar to appreciate. b. They will buy more U.S. dollars causing the U.S. dollar to appreciate in value. c. Those holding U.S. dollars will convert them to foreign currencies. d. They will buy fewer U.S. dollars causing the U.S. dollar to appreciate in value.