Suppose That You Have $100 Today and Expect to Receive

question 36

Multiple Choice

Suppose that you have $100 today and expect to receive $100 one year from today. Your money market account pays an annual interest rate of 25%, and you may borrow money at that interest rate. Consider the budget constraint between "spending today" on the horizontal axis and "spending a year from today" on the vertical axis. What is the slope of this budget constraint?

• A)−0.75
• B)−1.00
• C)−1.25
• D)−2.25

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Definitions:

Guard Cells

Pairs of cells surrounding stomata in plant leaves and stems, regulating gas exchange and water loss by controlling the opening and closing of stomata.

Epidermis

The outermost layer of cells covering an organism, particularly the surface epithelium of the skin or outer layer of leaves and other plant organs.

Parenchyma

A type of living plant tissue consisting of relatively unspecialized cells with thin cell walls that function in photosynthesis, storage, and as the site of many metabolic processes.

Tracheids

Tracheids are elongated cells in the xylem of vascular plants that serve in transport and structural support, facilitating the flow of water.