The diagram depicts Mary’s choice of consumptions in periods 1 and 2.

She has no income in period 1 and an income of $100 in period 2. In scenario 1

the interest rate is 78%, while in scenario 2 it falls to 10%. Based on this

information, which of the following statements is correct?

Julia

needs to borrow some money to buy a new computer.  Currently the rate is 12%, but she can

reasonably expect it to drop to 10%. 

Which is true?

Julia

owns a car that she bought last year for $1200. 

If the depreciation rate is 10% per year, what is her car worth today?

Julia

borrowed $250 at a rate of 9.5% per year. 

How much does she owe Marco in two years from now?

Marco has $250 to invest in a great firm, which can return him 40% next year.  If the interest rate is 10%, what is the maximum that Marco could borrow today?

Suppose the interest rate decreases from 10% per year to 5% per year.  Which of the following is true?

Which two of the following statements are correct?

The figure shows the market supply curve for second-hand textbooks, together with original and new demand curves, where the curve has shifted due to the arrival of new students. Based on the figure, which one of the following statements is correct?

The figure shows the market demand curve for bread, together with original and new supply curves, where the curve has shifted due to new bakeries entering the market. All bakeries are identical, and there are no entry costs. Which one of the following statements is correct?

In a perfectly competitive market in which the demand is Q = 30-P and the supply is Q = 2P - 3  (choose the correct two):