If your risk of losing your house to catastrophe is 25%, how much would fair insurance cost if your home were worth $1,000,000?
A) $250,000
B) $750,000
C) $1,000,000
D) Unable to determine with the information given.
A
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Before World War II, the average level of prices in the United States usually
A) fell during wartime and rose during peacetime. B) fell during wartime and fell during peacetime. C) rose during wartime and fell during peacetime. D) rose during wartime and rose during peacetime.
In the Keynesian model, money is
A) neutral in both the short run and the long run. B) neutral in neither the short run nor the long run. C) neutral in the short run, but not in the long run. D) neutral in the long run, but not in the short run.
Suppose that many consumers tend to over-state the discount rate that should be used for computing the net present value of education, just as they do when making investments in durable goods like cars and appliances
What would happen if consumers (as a group) started to use lower discount rates when making decisions about their education? A) NPV of a degree declines, demand for eduction declines B) NPV of a degree declines, demand for education increases C) NPV of a degree increases, demand for education declines D) NPV of a degree increases, demand for education increases
An orthodox model calls for cutting government spending, reforming the tax system to increase compliance and revenues, and limiting the creation of new money
Indicate whether the statement is true or false