13)

For the following equation: A=B(1+rt) if A=10,000 r=9% and t= 5, the value of B is (to the nearest two decimal places):

a.

6896.55

b.

0.22

c.

217.39

d.

11896.55

12)

An increase in the government budget deficit would likely lead to:

Select one:

A.

an increase in the equilibrium rate of interest

B.

a decrease in the equilibrium rate of interest

C.

a lower demand for funds in the economy

D.

A lower inflation rate