Which of the following changes would increase the present value of a future payment?
a. a decrease in the size of the payment
b. a decrease in the certainty of the payment actually being received
c. an increase in the amount of time that elapses before receiving the payment
d. a decrease in the interest rate
e. none of the above
D
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An example of money is
A) a checking account balance. B) a dollar bill. C) a traveler's check. D) all of the above.
Knowing that the presence of externalities reduces surplus, it implies that:
A. there are mutually beneficial trades waiting to be exploited, so government has an incentive to force those parties to solve the problem themselves. B. government needs to find them and correct the market. C. there are mutually beneficial trades waiting to be exploited so private parties have an incentive to solve the externality problem themselves. D. None of these statements is true.
The European Union promotes:
A. free trade among member nations, but not necessarily with nonmember nations. B. higher tariffs worldwide to promote more national stability. C. higher tariffs among member nations to encourage more trade between Western Europe and the United States and Japan. D. free trade among all nations.
When we use ordinary least squares to determine the relationship between changes in consumption and changes in both current and lagged income, we find that
A) only current income influences current consumption. B) current income has no impact on current consumption. C) consumption is not affected by income in any quarter. D) current income, last quarter's income, and income two quarter's ago all have the same impact on current consumption. E) current income has a greater impact on consumption than income lagged one quarter.