Assume that the current one-year rate is 5% and the two-year rate is 7%. Given this information, the one-year rate expected one year from now is

If a substitute good is easy to find, then demand for a good is

A) elastic. B) inelastic. C) unit elastic. D) perfectly inelastic. E) Substitutes don't have any effect on elasticity.

As more information is gather, the marginal cost of additional information ________ and the marginal benefit of additional information ________

A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases