Referring to Table 4.1, Box G should be filled with 

Vince says that the present value of $500 to be received one year from today if the interest rate is 8 percent is more than the present value of $500 to be received two years from today if the interest rate is 4 percent. Terri says that $500 saved for two years at an interest rate of 3 percent has a larger future value than $500 saved for one years at an interest rate of 6 percent

a. Both Vince and Terri are correct. b. Only Vince is correct. c. Only Terri is correct. d. Neither Vince nor Terri is correct.

Refer to Figure 23.2 for a perfectly competitive firm. Given the current market price of $100, we expect to see

A. Entry into this industry. B. Costs rise to absorb the profits earned by the firms in the industry. C. Exit from this industry. D. No change in the number of firms in this industry.