Suppose you know a piece of land will be worth $1 million (real) in 2025, and the real interest rate is 5%. About how much should you be willing to pay for the land today (20150)? (Assume no taxes)

Refer to Table 20-6. Consider the following values of the consumer price index for 1996, 1997, and 1998: The inflation rate for 1997 was equal to

A) 1.2 percent. B) 2.0 percent. C) 2.5 percent. D) 4.0 percent.

Airlines charge a ____________price to business travelers compared to leisure travelers because business travelers have a ____________ demand than leisure travelers

a. Higher; more elastic b. Higher; less elastic c. Lower; more elastic d. Lower; less elastic