(Consider This) In 2000, McDonald's introduced its McSalad Shaker, which failed to catch on with the public and was subsequently dropped from the menu. This failure illustrates the idea of:

Assuming a real interest rate of four percent, which of these causes the largest increase in the present value of lifetime resources?

A) a winning lottery ticket that pays $9,600 today B) an additional $10,000 of income in the future period C) a salary increase of $5,000 both today and in the future period D) an additional $10,000 of current wealth

Falling interest rates cause the market value of previously issued bonds to

a. rise. b. fall. c. remain unchanged. d. increase during periods of inflation but decline during periods of deflation.