The present value of $1 payable in two years is:
a. $1.
b. $1/(1 + 2r).
c. $1/(1 – 2r).
d. $1/(1 + r)2.
d
Economics
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Trade war occurs when, after a tariff is imposed, other countries retaliate with their own tariff
Indicate whether the statement is true or false
Economics
John's utility of wealth curve is shown in the above figure. He currently has wealth of $20,000. If there is a 10 percent chance of losing all his wealth, what is the value of insurance against this loss?
A) $0 B) $2,000 C) $3,000 D) $17,000
Economics