Answer:
Option (d) is correct.
Explanation:
If there is an improvement in the technology then as a result the producers will be able to produce more quantity of automobiles with the same level of resources. This will increase the supply of automobiles and shift the supply curve rightwards.
At the same time, the economy is experiencing a recession. This will reduce the income of the consumers and hence, the demand for automobiles also decreases. This will lead to shift the demand curve leftwards.
As a result of these shifts in the demand and supply curve, the equilibrium price will fall and the impact on equilibrium quantity is indeterminate because it will be dependent upon the magnitude of the shift of demand and supply curve.
The type of interest Andrea has earned is compound interest.
Simply put, compound interest is given on the principal sum of the deposit, along with the interest given on it.
This means that it is an interest on interest.
In the second year, Andrea reinvested her interest rather than taking it out.
So, in the next year, she earned interest on the principal amount deposited, plus the interest she accumulated in the first year.