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Author Question: If interest rates are positive, which of the following has the highest current value (Read 10 times)

fbq8i

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  • Posts: 527
on: Apr 19, 2019

Question 1

A person who strongly wishes to avoid risk would pick which of the following choices?


◦ a 50% chance of winning $750 or a 50% chance of winning $0.
◦ a 100% chance of getting $375
◦ a 50% chance of getting $750, 25% chance of getting $1,500 and a 25% chance of losing $1,500
◦ All of these are equal to a person who wishes to avoid risk

Question 2

If interest rates are positive, which of the following has the highest current value


◦ $350 a year from now.
◦ $350 now.
◦ $350 two years from now.
◦ All of these have the same current value.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by fbq8i on Apr 19, 2019

eliasc0401

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Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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fbq8i

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Reply 2 on: Apr 19, 2019
YES! Correct, THANKS for helping me on my review

ghepp

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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