Refer to the scenario above. What will be the future value of the deposit after 1 year?

The consumption function shows the relationship between planned real consumption spending and

A) planned real saving. B) the average propensity to consume. C) real disposable income. D) the marginal propensity to consume.

Consider a car dealership that advertises a three-year lease at $250 per month. When you arrive to apply, you discover that the lease requires a down payment of $3600 dollars. You will undertake the lease if

A) you value the lease at least $350 per month. B) you value the lease at least $250 per month, the $3600 is a sunk cost. C) you value the lease less than $350 per month. D) you value buying a new car at $400 per month.