Refer to the figure below. If box A represents households, B the product market, and C businesses, then flow (2) and flow (4) would represent:

When interest rates in the bond market go up

A) the price of existing bonds goes u

The figure above shows a production possibilities frontier. In the figure, when the economy moves from point E to point D, what is the opportunity cost of a DVD?

A) 0.25 cell phones B) 0.5 cell phones C) 1 cell phone D) 4 cell phones E) zero