The Keynesian theory of business cycle views volatile expectations of future sales and profits as the main source of economic fluctuations

The present value of $100 to be received in a year is

A) less than $100 and falls as the interest rate rises. B) less than $100 and rises as the interest rate rises. C) more than $100 and falls as the interest rate rises. D) more than $100 and rises as the interest rate rises.

Suppose the number of picture frames purchased increased by 5 percent when consumer income increased by 10 percent. Assuming other factors are held constant, picture frames would be classified as

a. inferior goods. b. normal goods. c. elastic goods. d. inelastic goods.