Winners of the Jackson City Lottery prize of $10 million are paid $1 million per year for ten years. Paid out in this form, this prize is
a. worth less than $10 million because the payment is deferred over time
b. worth more than $10 million because the payments remain constant for the next ten years
c. worth more than $10 million because the tax burden on the smaller payments is less
d. worth exactly $10 million
e. not worth $10 million only if the interest rate is positive
A
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Political tensions may arise from nations pegging to a center base country's currency if:
A) asymmetric shocks cause the home nation to lose the power to stabilize. B) it is determined that the center nation has been misrepresenting the value of its currency. C) financing of military spending becomes more difficult. D) interest rates are affected.
When did housing prices start to fall during the most recent housing boom?
A) 2005 B) 2006 C) 2007 D) 2008