If the market interest rate is 5 percent, the opportunity cost of 100 worth of present consumption
a. is 105 today
b. is 105 next year
c. is 5 today
d. is 5 next year
e. cannot be determined unless we know the consumer's rate of time preference
Question 2
Which of the following would be represented as a debit in the U.S. balance of payments?
a. U.S. purchase of cars from Italy
b. U.S. sale of beef to Israel
c. U.S. government receives transfers from foreign governments to support U.S. expenses incurred in Europe
d. U.S. residents receive gifts of money from friends abroad
e. income received by U.S. resident from overseas investment
Many types of edible fungi are grown for the market.
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