Assume that you are willing to postpone consumption today and buy a certificate of deposit (CD) at your local bank. Your reward for postponing consumption implies that at the end of the year ________.
A) you will be able to consume fewer goods
B) you will be able to buy the same amount of goods or services
C) you will be able to buy fewer goods or services
D) you will be able to buy more goods or services
Question 2
Assume that you are willing to postpone consumption of 1,000 today and buy a certificate of deposit (CD) at your local bank with the 1,000. Holding the CD for one year provides you with an 8 reward for saving or postponing consumption.
This reward for postponing consumption implies that at the end of the year you will have how much more money for spending?
A) 79.50
B) 79.75
C) 79.90
D) 80.00
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