The present discounted value of R dollars to be paid in t years is
A. the future market value of receiving R dollars in t years.
B. the amount you will have to save in the future to allow you to consume R dollars today.
C. the amount you have to put aside now if you want to ensure that you end up with R dollars t years from now.
D. equal to R × t years.
Answer: C
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An individual paying twice as much in Social Security taxes over her lifetime as another individual would receive at least twice as much in Social Security benefits
a. True b. False
The GDP can overstate the economy because ___________.
a. it excludes self-production, increased leisure time, and improved health. b. it includes self-production, increased leisure time, and improved health. c. it excludes harm caused by pollution, crime, and income inequality. d. it includes harm caused by pollution, crime, and income inequality.
The average tax rate is defined as
a. the average number of times a circulating dollar is taxed during a year. b. the change in the tax rate as income increases. c. the change in the tax rate as income decreases. d. tax liability divided by taxable income.
Suppose that FDI has "spillover" benefits for the recipient nation (such as spurring technological innovation, more FDI, or growth in labor productivity). These spillover effects might help explain why:
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