Val is deciding between 3 loans that would each involve her receiving $2,000 today and then paying back the original principal and all accrued interest in 1 year from today. Loan A has an APR of 14.09%, compounded annually. Loan B has an APR of 13.24%, compounded continuously. Loan C has an APR of 13.36%, compounded quarterly. Which of the following assertions is true if Val prefers loans with lower costs more than he prefers loans with higher costs? 1. Val would prefer loan A to loan B and Val would prefer loan A to loan C
2. Val would prefer loan B to loan A and Val would prefer loan C to loan A
3. Val would prefer loan B to loan A and Val would prefer loan A to loan C4. Val would prefer loan A to loan B and Val would prefer loan C to loan A

The new york times (nov. 30, 1993) reported that “the inability of opec to agree last week to cut production has sent the oil market into turmoil . . [leading to] the lowest price for domestic crude oil since june 1990.” why were the members of opec trying to agree to cut production? so they could save more oil for future consumption so they could lower the price so they could raise the price why do you suppose opec was unable to agree on cutting production? because each country has a different production capacity because each country experiences different production costs because each country has an incentive to cheat on any agreement the newspaper also noted opec’s view “that producing nations outside the organization, like norway and britain, should do their share and cut production.” what does the phrase “do their share” suggest about opec’s desired relationship with norway and britain? opec would like norway and britain to keep their production levels high. opec would like norway and britain to act competitively. opec would like norway and britain to join the cartel.