Internal rate of return analysis suggest that a project should be undertaken if

If people expect nominal interest rates to be higher in the future, the expected return to bonds ________, and the demand for money ________

A) rises; increases B) rises; decreases C) falls; increases D) falls; decreases

Refer to the data. If year 2 is chosen for the base year, in year 3 nominal GDP and real GDP, respectively, are:

Assume an economy that is producing only one product. Output and price data for a three-year period are as follows. Answer the question on the basis of these data.

A.  $180 and $30.
B.  $30 and $5.
C.  $180 and $120.
D.  $120 and $100.