In the above figure, if the price of milk rises, the budget line
A) rotates outward and the slope becomes steeper.
B) shifts inward and its slope does not change.
C) rotates inward and the slope becomes steeper.
D) rotates inward and the slope becomes more shallow.
C
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The ________ rate is the rate at which one currency can be traded for another
A) explicit exchange B) nominal exchange C) expected exchange D) real exchange
Competition in the form of advertising, better customer service, or longer warranties can also reduce profits by raising costs
Indicate whether the statement is true or false
Which of the following is a fair bet based on the toss of an unbiased coin?
A) head: receive $5, tail: lose $5 B) head: receive $2, tail: lose $3 C) head: receive $0.5, tail: lose $1 D) head: lose $3, tail: lose $3
If i is the interest rate and X is the number of dollars to be received after t years, the formula to calculate the present value of a future payment is:
A. (1 + i) t X B. X/(1 + i) t C. i t /(1 + X) D. (X/i)