If your broker tells you that a trust to which you are a beneficiary has changed, and instead of getting $5000 per year starting next year, you will be getting $6000 per year, but it will be starting the year after next, the present value to you has
A. might have either fallen or risen, depending on the interest rate.
B. remained unchanged.
C. fallen.
D. risen.
Answer: A
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________ are short-term loans in which Treasury bills serve as collateral
A) Repurchase agreements B) Negotiable certificates of deposit C) Federal funds D) U.S. government agency securities
According to international trade theory, a country should: a. import goods in which it has an absolute advantage
b. specialize in the production of the good in which it has an absolute disadvantage. c. export goods when it has either a comparative or absolute disadvantage in producing them. d. specialize in the production of the good in which they have a comparative advantage.
Even though international trade is undertaken voluntarily, a country that engages in trade may not benefit from it.
Answer the following statement true (T) or false (F)
Last year, Jim bought 8 tickets to sporting events when his income was $30,000 . This year, his income is $33,000 . and he purchased 10 tickets to sporting events. Holding other factors constant and using the midpoint method, it follows that Jim's income elasticity of demand is about
a. 0.43, and Jim regards tickets to sporting events as inferior goods. b. 0.43, and Jim regards tickets to sporting events as normal goods. c. 2.33, and Jim regards tickets to sporting events as inferior goods. d. 2.33, and Jim regards tickets to sporting events as normal goods.