Imagine that someone offers you $100 today or $200 in 10 years. You would prefer to take the $100 today if the interest rate is
a. 4 percent.
b. 6 percent.
c. 8 percent.
d. All of the above are correct.
c
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Mark works as a business development officer for a leading electronics company. His main task is to meet potential clients in their respective offices and try to enter into a business deal with them
Irrespective of the number of clients approached and deals made, Mark earns a fixed salary every month. Because his boss does not cross-check how many clients he meets in a day, Mark often does not meet all the clients that he is supposed to. His behavior is an example of ________. A) adverse selection B) moral hazard C) a positive externality D) a pecuniary externality
Compute the tax rates for the three taxpayers shown in Table 33.1. Then use the table to answer the indicated question. TaxpayerIncome (Dollars)Taxable Income (Dollars)Taxes Paid (Dollars)Effective Tax Rate(Percent)Nominal Tax Rate(Percent)1$200,000$100,000$6,000________%________%2100,00080,0008,000________%________%360,00048,00012,000________%________%In Table 33.1, the nominal tax rate for taxpayer 3 is
A. 20.0 percent. B. 5.0 percent. C. 12.5 percent. D. 25.0 percent.
If we consider the quantity theory of money and Professor Irving Fisher, who did a lot of his work in the early 20th century, why might Professor Fisher feel less confident about predicting constant velocity of money today than when he did his work?
What will be an ideal response?
_____ and _____ are the two most important financial intermediaries
Fill in the blank(s) with correct word