As the price of gasoline rose during the 1970s, consumers cut back on their use of gasoline relative to other consumer goods. This situation contributed to which bias in the consumer price index?

In a capitalabundant country, free trade will cause a(n) __________ in the rental of capital and a(n) ____________ in the marginal product of capital.

a. increase; increase b. increase; decrease c. decrease; decrease d. decrease; increase

If the annual interest rate is 5 percent,

a. $100 saved today will be worth $105 after one year b. $90 saved today will be worth $100 after one year c. $100 saved today will be worth $5 after one year d. $99 saved today will be worth $100 after one year e. $100 saved today will be worth $1,000 after one year