Suppose you can earn 5 percent on your savings account if you ...

[natalie2426]

Suppose you can earn 5 percent on your savings account if you deposit 500 in it. The inflation rate is 3 percent. The opportunity cost of holding the 500 as money is
 
  A) 100. B) 525. C) 80. D) 30. E) 25.

Question 2

Moving along the AS curve, when the price level increases, the
 
  A) nominal wage rate falls, and there is an increase in the quantity of real GDP supplied.
  B) real wage rate rises, and there is an increase in the quantity of real GDP supplied.
  C) nominal wage rate rises, and there is a decrease in the quantity of real GDP supplied.
  D) real wage rate falls, and there is an increase in the quantity of real GDP supplied.
  E) real wage rate rises, and there is a decrease in the quantity of real GDP supplied.

[dominiqueenicolee]

Answer to Question 1

E

Answer to Question 2

D

[natalie2426]

TYSM

[nyrave]

Thanks for the timely response, appreciate it