If the annual interest rate remains unchanged over the next two years, and the present value of $120 to be received one year from now is $100, what will $100 be worth two years from now?

Which of the following changes would not lead to a shift in Canada's production possibilities curve?

a. the introduction and use in Canada of more advanced technology b. a substantial emigration of Canadian workers to the U.S. c. a prolonged summer drought in Canada's Prairie Provinces that destroys 18% of Canada's wheat harvest d. a sharp increase in the number of Canadians earning advanced degrees in education, e.g., BA's, BS's, MD's and PhD's e. a change in the composition of Canada's output

An advantage of transfer payments over public works as a means of reducing unemployment is that transfer payments

a. provide more direct aid to those suffering most from unemployment. b. are unlikely to decrease unintended excess inventories of consumer goods. c. generate more secondary and tertiary employment. d. tend to have a larger multiplier effect.