What does liquidity tell us?
a. How fast as asset can be bought from an investor
b. How fast cash can be taken out of a bank
c. How fast an asset can be used to buy a good or service
d. How fast an asset can be sold to another investor
c. How fast an asset can be used to buy a good or service
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Suppose you paid $500,000 for an asset. You hold the asset for five years. The interest rate that you get for the asset is 10%. Assume the tax rate on capital gains is 20%.
(A) If capital gains are taxed only when the asset is realized, how much will you have earned on the asset? (B) Suppose that capital gains are taxed annually instead of at realization. How much will you have earned on the asset? (C) How big is the difference in the two taxing schemes?
Offering product-specific services ________ consumer demand, shifting the market demand curve to the ________.
A) decreases; right B) increases; left C) increases; right D) decreases; left
Given an annual interest rate of 12 percent, what is the present value of receiving $1,000 in 20 years?
A) $890.45 B) $850.23 C) $112.16 D) $103.67
Any supply curve that is a straight line passing through the graph's origin is unit elastic
a. True b. False