Author Question: Winners of the Jackson City Lottery prize of 10 million are paid 1 million per year for ten years. ... (Read 112 times)

newbem · **on:** Jun 30, 2018

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

Question 2

If a foreign currency becomes more expensive in United States dollars, we would expect
a. U.S. exports to increase
b. U.S. imports to increase
c. U.S. exports to remain constant
d. U.S. exports to decrease
e. the quantity of foreign currency demanded in the United States to rise