On January 1, 2006, a consumer borrowed $10,000 for a term of one year at an interest rate of 12 percent. How much principal and interest will the consumer pay back on January 1, 2007?

A key assumption of the classical model is that

a. government intervention is important to get markets to clear b. prices adjust until quantity supplied equals quantity demanded c. markets never clear in the long run d. demand adjusts in order to meet supply e. prices remain constant and supply and demand adjust

A necessary condition for the operation of a perfectly competitive market is free entry and exit from the market.

Answer the following statement true (T) or false (F)