An increase in interest rates:
A. Raises the present value of a future amount
B. Lowers the present value of a future amount
C. Lowers the future value of a present amount
D. Has no effect on present or future amount
B. Lowers the present value of a future amount
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Describe the payoffs for an R&D game of chicken and contrast them with the payoffs in a prisoners' dilemma
What will be an ideal response?
Your bank has the following balance sheet Assets Liabilities Rate-sensitive $100 million Rate-sensitive $75 million Fixed-rate 100 million Fixed-rate 125 million What would happen to bank profits if the interest rates in the economy go down
? Is there anything that you could do to keep your bank from being so vulnerable to interest rate movements?
This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single grade. They both will enjoy a higher grade when more effort is put into the project, but they also get pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive.According to the figure shown, if Sarah puts forth low effort, then Joe should:
A. put forth high effort. B. give an ultimatum. C. put forth low effort. D. leave the market.
Which of the following best explains why most basic scientific research in the United States is financed by the government?
A. Basic scientific research takes a long time to become commercially viable. B. Basic scientific research rarely results in commercially viable discoveries. C. Federal law limits basic scientific research because of potential national security threats. D. Private firms collectively spend far less on all types of R&D than the federal government.