The Great Homebody Nationwide Sweepstakes promises its winners a choice between 200,000 now or 120,000 now and 100,000 next year. The winners should take the 200,000 now
a. no matter what the interest rate is
b. no matter what the interest rate is, if their rate of time preference is high
c. no matter what the interest rate is, if their rate of time preference is low
d. only if the interest rate is above 25 percent
e. only if the interest rate is below 25 percent
Question 2
If the exchange rate changes from 1 euro per U.S. dollar to 1.2 euros per U.S. dollar, the Euro has
a. appreciated, since its value has increased
b. appreciated, since the price of U.S. dollars has increased
c. appreciated, making U.S. goods cheaper in Euros
d. depreciated, since its value has declined
e. depreciated, since its value has increased
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