The appropriate discount rate should not be adjusted for _____
a. inflation
b. risk of default
c. taxes on interest
d. a and c
b
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In a business cycle boom, we expect an unusually ________ proportion of actual income to be transitory, thus an unusually ________ MPC operating in the short run, which ________ the income multiplier for the short run
A) high, low, reduces B) high, low, increases C) high, high, reduces D) low, low, increases E) low, high, reduces
To increase safety at a bad intersection, the mayor must decide whether to install a traffic light at a cost of $45,000 . If the traffic light reduces the risk of fatality by 0.4 percent, and the value of a human life is estimated to be $10 million, the mayor should
a. install the light because the expected benefit of $400,000 is greater than the cost. b. install the light because the expected benefit of $45,000 is greater than the cost. c. not install the light because the expected benefit of $45,000 is only equal to the cost. d. not install the light because the expected benefit of $40,000 is less than the cost.
A problem related to the declining terms of trade is that _________, once the costliest portion of manufacturing, now represents only a minor expense.
Fill in the blank(s) with the appropriate word(s).
Suppose a men's suit produced in Moldavia sells for 250 euros. If the exchange rate between euros and dollars is €1 = $1.38, how much will an American pay for the suit?
A. $250.00. B. $345.00. C. $181.16. D. $138.00.