At which interest rate is the present value of $35.00 two years from today equal to about $30.00 today?

Which of the following increases the size of the expenditure multiplier?

A) an increase in investment B) an increase in autonomous spending C) a decrease in the marginal propensity to consume D) a decrease in the marginal propensity to import E) an increase in the marginal income tax rate

If an economist were to consult for a major Fortune 500 company, and he reached the conclusion the firm was making zero economic profit,

A) the firm's accounting profit would be greater than zero. B) the firm should go out of business immediately. C) the firm's accounting profits would be lower. D) the economist's numbers were probably wrong because economic profit can never be zero.