The Table Above Shows the Interest Rates Available from Investing

question 20

Multiple Choice

The table above shows the interest rates available from investing in risk-free U.S. Treasury securities with different investment terms. What is the present value (PV) of cash flows from an investment that yields $6000 at the end of each year for the next four years?

• A) $18,111
• B) $27,167
• C) $31,695
• D) $22,639

Understand the basic principles of behaviorism and operant conditioning as proposed by B. F. Skinner.

Recognize the role of reinforcement and punishment in shaping behavior.

Differentiate between positive and negative reinforcement, and positive and negative punishment.

Understand the concepts of fixed-ratio, fixed-interval, variable-ratio, and variable-interval schedules of reinforcement.

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Definitions:

Potential Output

The maximum amount of goods and services an economy can produce when it is most efficiently utilizing all of its resources.

Skilled Workers

Employees who have specialized training, expertise, knowledge, and abilities in their fields of work.

Aggregate Demand

The overall requirement for every good and service in an economy, measured at a particular price level and within a designated timeframe.

Long-Run Aggregate Supply Curve

A visual representation depicting an economy’s potential output when all resources are fully employed, irrespective of the overall price level.