What is the present value of $200 one year from now when the interest rate is 6 percent?
A) $125.00
B) $188.68
C) $212.00
D) $320.00
B
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With a negative income tax, the larger the difference between the break-even income level and the guaranteed level,
a. the greater the tax rate (by definition). b. the greater the incentive to work. c. the smaller the number of people eligible to receive benefits. d. the more inequitable the resulting distribution of income will be.
Rent control may lead to lower rents for those who find housing, but the quality of the housing may also be lower
a. True b. False Indicate whether the statement is true or false
Loss aversion is the tendency to experience losses as:
A. more painful than the pleasures that result from gains of the same magnitude. B. more painful than gains of any magnitude. C. less painful than the pleasures that result from gains of the same magnitude. D. just as painful as the pleasures that result from gains of the same magnitude.
(Advanced analysis) Kara has $2,000 to invest today that she wants to grow to $3,000 in five years. What annually compounded rate of interest would she have to earn to reach her goal?
A. 4.6 percent. B. 6.5 percent. C. 8.4 percent. D. 9.3 percent.