If the annual interest rate is 5%, the net present value of receiving $550 in the next year is:
a. $550
b. $523.80
c. $577.50
d. $500
b
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Fresh orange juice and frozen orange juice are substitutes in production. The price of fresh orange juice rises. As a result, the equilibrium price of frozen orange juice ________ and the equilibrium quantity ________
A) rises; increases B) rises; decreases C) does not change; decreases D) falls; increases E) falls; decreases
If the real interest rate is below equilibrium, which of the following is likely to occur? a. Lenders will raise their interest rates which will encourage saving
b. Lenders will raise their interest rates which will encourage borrowing. c. Lenders will lower their interest rates which will encourage saving. d. Lenders will lower their interest rates which will encourage borrowing.
If Utopia opened itself to trade it would 
A. import 250 cases of tile per year. B. export 450 cases of tile per year. C. export 100 cases of tile per year. D. import 150 cases of tile per year.
The price of a gallon of gasoline at the pump increased by 10 percent at the same time that the inflation rate was 5 percent. The nominal price of gasoline ________, and the real price of gasoline ________.
A. increased; decreased B. increased; did not change C. increased; increased D. decreased; increased