What is the present value of $500 to be received eight years from now if the interest rate is 5 percent?

With a fixed supply of money, as GDP rises, the demand for money ____ and therefore ____ must rise to encourage savers to hold financial assets instead of cash.

A) falls; prices B) rises; incomes C) rises; rates of interest D) falls; taxes

Which of the following is a similarity between a second-price sealed-bid auction and an English auction?

A) Bids are placed privately in both the auctions. B) Bids are placed publicly in both the auctions. C) Bidders place their bids simultaneously in both the auctions. D) The winner pays an amount equal to the second-highest bid in both the auctions.