1. According to the wage-price spiral, if a company gives a worker a raise in pay, then they raise the price of their products. 2. When the actual inflation rate is lower than expected, lenders win and borrowers lose, because the real interest rate is greater than expected. 3. A $495 simple interest would be earned on a savings account of $4,500 at 5.5% interest per year after 24 months. 4. The effective rate that equivalents to 5.5% compounded every 8 months is 3.54%. 5. Certainty is a kind of decision-making conditions which means that all the information the decision maker needs is fully available, but information about alternatives and future events is incomplete. 6. With an interest rate of 8% compounded semiannually, the value of a $1000 investment after 5 years is most nearly (\$1840). 7. The desire or willingness a consumer has to purchase a good or a service is called demand. 8. The present value of a future amount is smaller when interest rates increase. 9. When the supply of a product or service goes down and the demand stays the same the Price will typically fall. 10. To carn as much interest as possible, you should open a savings account that eams compound interest and has the lowest interest rate