Refer to the figure below. If Mallory and Rick are the only two consumers in this market and the price of soda increases from $0.75 to $1.00 per can, the quantity of soda demanded in the market will ________ by ________ cans per week. 
A. decrease; 20
B. increase; 40
C. increase; 20
D. decrease; 40
Answer: D
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Suppose the U.S. interest rate is 6 percent and the world interest rate is 5 percent. The U.S. interest differential is
A) -1 percent. B) 1.2 percent. C) 1 percent. D) -0.83 percent.
According to Classical interest rate theory, which of the following will increase the equilibrium interest rate?
A) A decrease in investment B) A decrease in saving C) An increase in money demand D) A decrease in money demand
The equation u2t = 
0+1u2t-1 + vt is an autoregressive model in _____.
A. ut B. u2t C. vt D. ut -1
Suppose that Brazil is capital abundant and Chile is natural resource abundant. If timber is natural resource intensive and computers are capital intensive, then according to the Stolper-Samuelson Theorem, the incomes of the owners of ________ are likely to rise in Brazil after trade with Chile begins.
A) capital
B) labor
C) natural resources
D) It is impossible to determine which will be favored.