If the interest rate is 10% then the net present value of these cash flows is
a. $5,000
b. - $9,091
c. -$15,290
d. -$21,901
c
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Robert Shiller posed the following question to workers: "Imagine that next year the inflation rate unexpectedly doubles
How long would it probably take, in these times, before your income is increased enough so that you can afford the same things as you do today?" Shiller found that ________ percent of the workers he interviewed reported that it would take several years to restore the purchasing power of their wages or that this power would never be restored. A) 25 B) 42 C) 64 D) 81
Nominal GDP will increase
A) only if the quantity of final goods and services produced rises. B) if either the price level or the quantity of goods and services produced rises. C) only if the price level rises. D) only if the price level falls.
Under the Bretton Woods system, exchange rates were supposed to be adjusted
A) only when a country experienced fundamental disequilibrium. B) daily. C) weekly. D) following each annual meeting of the board of governors of the International Monetary Fund.
Comparing the California test scores to test scores in Massachusetts is appropriate for external validity if
A) Massachusetts also allowed beach walking to be an appropriate P.E. activity. B) the two income distributions were very similar. C) the student-to-teacher ratio did not differ by more than five on average. D) the institutional settings in California and Massachusetts, such as organization in classroom instruction and curriculum, were similar in the two states.