If Alexander has a positive rate of time preference, he will
a. prefer to have goods now rather than two years from now.
b. prefer to have goods two years from now rather than during the current period.
c. prefer apples to oranges.
d. be unwilling to pay an interest rate in order to acquire purchasing power now.
A
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Under current U.S. tax laws, the interest paid on any debt-financed investment ________ tax deductible and the interest expense ________ the net present value of an investment.
A) is not; raises B) is; lowers C) is; raises D) is not; lowers
The true burden of the internal debt is the opportunity cost of the activities financed by the debt, and the burden occurs when the debt-financed activity takes place.
Answer the following statement true (T) or false (F)
The two factors that determine the size of the multiplier are the
A. unemployment rate and the inflation rate. B. marginal propensity to consume and the amount of overseas leakage. C. amount of imports and the amount of exports. D. amount of spending and the number of jobs.
?If a firm shuts down in the short run and produces no output, its total cost will be:
a. ?equal to only explicit costs. b. ?equal to the fixed cost. c. ?equal to the variable cost. d. ?equal to the sum of implicit and explicit costs. e. ?equal to zero.