The expected value of a future payment differs from the present discounted value in that the expected value
A. Uses a lower interest rate in its calculation.
B. Assumes that future payments take place over a longer period of time.
C. Takes into account the possibility of nonpayment.
D. Uses a higher interest rate in its calculation.
Answer: C
Economics
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A change in the interest rate does not affect the quantity of money supplied. This means that:
a. the money supply curve is negatively sloped. b. the money supply curve is vertical. c. the money supply curve is horizontal. d. the money supply curve is a 45 degree line drawn from the origin. e. the money supply curve is kinked.
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How many units of labor would you hire?
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